Construction Firms Are Missing Out on Government Fundsw Blog Post

Construction Firms Are Missing Out on Government Funds – Here’s What You Need to Know

The UK construction industry continues to face rising material costs, labour pressures, and tighter margins, yet many construction firms are unaware that the government has committed substantial funds to help businesses boost cash flow and support growth.

These funds are accessible through tax relief, cash refunds and financial incentives, designed to reward firms who solve site challenges, develop new methods, or adapt building processes.

Cash Flow Support Hidden in Plain Sight

Government schemes such as R&D Tax Relief, Capital Allowances, and Land Remediation Relief are actively available to construction businesses. While often thought to apply only to laboratories or technology companies, many core construction activities already qualify.

These incentives can provide:

• Tax refunds for previously paid corporation tax

• Cash credits where losses have been made

• Tax relief to offset rising 25% corporation tax rates

The average benefit claimed by qualifying firms is now over £53,000, with many receiving significantly higher.

Why It Matters to Construction Businesses

With cash flow under increasing pressure, overlooking these schemes can mean leaving critical funds on the table. Recovering eligible costs can help construction firms:

✅ Fund new equipment and machinery
✅ Offset cost overruns or site delays
✅ Invest in workforce and safety improvements
✅ Reinforce cash reserves amid rising costs

Qualifying Activities in Construction Often Include:

• Overcoming engineering or structural challenges

• Developing bespoke methods or temporary works solutions

• Redesigning building systems due to site constraints

• Trialling new materials, installations, or techniques

• Solving ground, drainage, access, or load issues

• Design and build solutions that ‘standard practice’ couldn’t solve

Construction: Critical to the UK’s Growth

Construction is a fundamental driver of the UK economy, delivering infrastructure, regeneration and innovation across every region. The government’s aim is clear: support firms that design, solve, and build the future.

Don’t Let Funding Go Unclaimed

Many contractors, developers, and specialists unknowingly qualify for substantial financial support simply for the challenges they face every day on site. Senior management should now be actively exploring these schemes, not as optional extras, but as strategic tools to strengthen cash flow and protect profit.

In construction, every pound reinvested builds tomorrow.