Part two: key construction and engineering insights from the King’s Speech 2026 – infrastructure and digital developments

Earlier this month, the King’s Speech set out the UK government’s legislative agenda across areas including national security, economic reform, energy and housing, with several proposals directly affecting the construction and engineering sector in the future. [1]

We outline the key infrastructure and digital developments and priorities most relevant to developers, contractors, consultants and their insurers, highlighting areas to monitor as further detail on the proposed legislation emerges.

Infrastructure-specific announcements

A  number of measures contained in the Speech seek to facilitate trade, attract investment and deliver “world class infrastructure”.[2]

Several transport-related changes and construction opportunities featured throughout the Speech. For instance, the Highways (Financing) Bill seeks to attract private investment, to accelerate road building and upgrades, including major schemes such as the Lower Thames Crossing, while supporting economic growth and improving network safety and reliability.

The government has reiterated its action and funding commitments, including the £27 billion investment for motorways and major A roads. This includes £8.4 billion to renew ageing assets and enhance network resilience and performance. £7.3 billion will be invested over the next four years to repair and renew local roads and fix issues such as potholes[3]. This signals a continued pipeline of civil engineering, construction, maintenance and other delivery opportunities across the sector.

Steps will be taken under the Railways and Passenger Benefits Bill to establish Great British Railways (creating a new publicly owned company at the centre of a reformed rail network). There may be changes relating to contractual arrangements, including interested parties and stakeholders, once more detail is made available.

The Northern Powerhouse Rail Bill is positioned to deliver more reliable and frequent services across northern cities (with onward links to England and North Wales), supported by phased investment in upgrades. These proposals are expected to enhance transport and support wider development objectives, including housing delivery, improved connectivity to employment, and enhanced opportunities for business growth.

The Civil Aviation Bill aims to drive investment and innovation in the aviation sector, unlocking the benefits linked to airport expansion and enhance safety. It also strives to maintain the UK’s position as a competitive international hub, while increasing capacity for trade and business.

Together, these measures point towards future infrastructure and regeneration opportunities within the sector. The Speech also signals legislative measures to safeguard key industries and national resilience. For example, the Steel Industry (Nationalisation) Bill intends to protect domestic steel production and preserve critical capability and capacity, including by enabling government intervention to nationalise steel companies (or their operations) where required in the public interest.

The Clean Water Bill will build on earlier legislation and introduce further reforms to improve water infrastructure, water quality and environmental performance. For the construction sector, this may create new contracting opportunities linked to the delivery of critical infrastructure. For instance, the legislative measures are expected to enable pre-pipe solutions, such as sustainable drainage systems, to reduce network pressures and spills.

Digital developments

Proposed actions under the Cyber Security and Resilience Bill and the National Security Bill aim to strengthen protection of the UK’s defence capabilities and digital economy against evolving and increasing cyber threats. Subject to the details, this action may be welcomed by businesses and insurers who can be hit by significant delay or disruption and costs associated with cyber-attacks.

The Digital Access to Services Bill proposes to modernise certain public services, including the introduction of a Digital ID system to facilitate access to services and verification of right to work requirements.

Sector-specific implications

Overall, the Speech signals developments, opportunities and broader economic reforms relevant to contractors, consultants and wider industry stakeholders. The detailed scope and substantive provisions of all the proposed legislation is yet to be finalised. It will therefore be important for businesses to continue to monitor the development of these measures and to assess the potential impacts on operations, projects or contractual arrangements going forward.

In anticipation of changes coming into effect, businesses may wish to take preliminary steps to review their contracts and processes, to ensure they are ready for the anticipated legal and regulatory changes and agile for those new opportunities coming down the line.

Our next updates in this mini-series will explore further core areas, including ESG, environmental points, energy and building safety.

If you wish to discuss any of the points covered above and how they may impact your business operations, please contact Andrew Croft, Kayleigh Rhodes or your usual Beale & Co contact.

[1] The King’s Speech 2026 – GOV.UK, published 13 May 2026

[2] Refer to the King’s Speech for this reference

[3] THE KING’S SPEECH 2026 Briefing Pack, Highways (Financing) Bill, page 37