Specific projects in Ipswich and beyond are now on hold as firms cite planning gridlock, rising employment costs and viability concerns ahead of tomorrow's Budget.
Nationally, the pattern is replicated. While the construction sector has the workforce and appetite to deliver the government's infrastructure and housing ambitions, prolonged Budget uncertainty is paralysing investment decisions.
Last year's employer national insurance rise has already cost 125,000 jobs according to industry estimates, with 35 per cent of firms now reviewing or pausing projects despite maintaining longer-term confidence.
Investment decisions on hold
Kristian Day, director of Insight Energy, has seen the impact first-hand. "Many businesses are nervous about the upcoming budget announcement, particularly one large local client who has shelved their expansion plans for 2026 due to the broader economic outlook."
The decision means a warehouse won't be built, and solar investment is paused. "They decided to pause their plans to invest in solar PV at their main distribution centre and stop building a new warehouse because they were not comfortable with the projected growth in the UK. This will have a direct impact on jobs, businesses, and the local economy."
Planning identified as the primary barrier
Gipping Construction, led by joint managing directors Andy Laflin and Paul Orriss, has watched clients pull back from commitments. "We have suffered delays from clients who have felt unwilling or unable to commit to projects. For example, one commercial development in Ipswich and various residential developments have been put on hold due to viability issues."
Their diagnosis is blunt: "By far the biggest barrier is planning. Joint second are tax and regulation, which are driving up costs and causing delays."
The assessment echoes complaints heard across the sector, where firms cite the cumulative weight of inflation, Brexit, Covid-19 disruption, labour shortages and regulatory complexity. Construction suppliers report that business is stagnant, with some seeing activity down by as much as 20 per cent.
The government has promised planning reform to meet its 1.5 million homes target, but progress has been slow. Local planning authorities remain under-resourced and risk-averse, while the Building Safety Regulator has created new bottlenecks for major projects. Industry leaders argue that without radical simplification of the approval process, housebuilding targets will remain aspirational.
The employer NI burden
If planning is the biggest barrier, employment costs run a close second. Gipping is clear about what the Budget must deliver: "Reverse the increase in National Insurance Contributions for employers (or reduce the level). Tax revenue should not all be passed to employers, as this reduces investment and growth, which in turn stifles the economy across the board."
The call reflects sector-wide concern about last year's national insurance rise, which has already cost 125,000 jobs nationally, according to industry estimates.
Greg Newman, co-founder and director of The Lanman Group, warns that small and medium-sized enterprises are particularly exposed. "From what's been trailed, the outlook feels negative for small businesses, with many SMEs already struggling under PAYE changes."
Speculation ahead of the Budget has focused on potential further tax rises, with some reports suggesting changes to capital gains tax and inheritance tax rather than employment taxes. However, the Treasury has refused to rule out additional measures, leaving businesses planning in a vacuum.
Solar investment needs clarity
The warehouse solar installation sitting on hold at Insight Energy's client is far from unique. Newman argues that government support for renewables is too narrowly focused. "[We need] clearer government support for solar in this year's Budget. Heat pumps have their place, but they're not right for every property – solar deserves far greater recognition in the renewables mix."
Kristian Day believes targeted incentives could unlock rapid progress. "The single most effective Budget measure would be the introduction of a 'Local Clean Energy Incentive Fund' that offers targeted capital grants or tax incentives for commercial rooftop solar and battery storage installations."
Suffolk's industrial estates, logistics hubs and agricultural buildings offer prime territory, he explains: "In Suffolk, where many businesses operate from industrial estates, logistics hubs, and agricultural buildings, this would immediately unlock underutilised roof space and remove one of the most significant barriers to investment: upfront cost."
The government has committed to clean power by 2030 and quadrupling offshore wind capacity, but solar deployment on commercial and industrial buildings has lagged behind residential installations. Without targeted support for business investment in solar, the UK risks missing its own net-zero milestones while leaving vast roof space unused.
Capacity exists when certainty allows
The sector's capacity to deliver isn't theoretical. Castons, the chartered surveyors, has doubled its workforce to 65 over the last five years, with many starting as trainees.
Tim Tompkins, director of cost management at Castons, said graduate apprenticeship schemes demonstrate what's possible with sustained commitment. "A skilled workforce will be crucial to deliver the ambitious plans the Government has, and graduate apprenticeship schemes like ours will be a vital part of that."
The firm is already training workers for large infrastructure projects in the region, including Sizewell C power station. The capacity exists – what's missing is the policy certainty that allows firms to commit to similar long-term investment.
The bottom line
Suffolk's construction sector is ready to deliver. Castons has doubled its workforce, firms have projects lined up, and solar investment opportunities abound. What's missing is certainty.
Wednesday's Budget will determine whether that Ipswich commercial development can proceed, whether shelved expansion plans return to the table, and whether the government backs the sector with planning reform and national insurance reversal.
The capacity exists. The question is whether Rachel Reeves will provide the stability needed to unlock it - or whether Suffolk's projects remain frozen by prolonged policy uncertainty.
