Unlocking creative possibilities to build brand legacy.
The 2025 Budget: What it really means for construction bidding, a SANDBOX perspective
Budgets tend to arrive with a lot of noise and not a lot of clarity and this year is no different. For construction and infrastructure teams preparing to bid into the public sector, the Autumn Budget offers a few solid footholds, a few missed opportunities, and quite a lot of complexity to navigate. There is opportunity in this Budget, but there is also pressure - on prices, on margins, on planning systems, on bidder discipline, and on supply chains that are already stretched thin.
Author
Lizzie Revill & Paul Collins
Read Time
5 mins
Buyers will expect more, pipelines will tighten, and value, not just cost, will define the winners.
For those bidding for public-sector work in the next two years, this Budget isn’t just an economic statement, it’s a signpost. And the direction of travel is clear: buyers will expect more, pipelines will tighten, and value, not just cost, will define the winners.
A pipeline worth watching, but still shaped by uncertainty
The good news is that the Budget confirms £8.3bn for major infrastructure projects and £1.2bn for brownfield development, which should help stabilise the capital pipeline. High-profile projects received renewed funding commitments, including new allocations for the Lower Thames Crossing, support for Heathrow expansion, Northern Powerhouse Rail, and investment in local schemes like the Peterborough Sports Quarter and Doncaster Science Centre, which adds some welcome clarity.
But visibility isn’t the same as certainty. The Budget doesn’t change the government’s three-year Spending Review, meaning Health and Defence remain the big winners, while Education, Justice and local government continue to operate with constrained budgets. For bidders, it creates a polarised pipeline of large, well-funded projects in protected sectors, and heavily contested, value-driven competitions everywhere else.
Regional funding and frameworks
A quieter but strategically important part of the Budget involves the growing influence of devolution. The Budget devolves £13bn to Mayoral Strategic Authorities and hands them meaningful control over investment through major new funding streams, including the £902m Local Growth Fund, the £500m Mayoral Revolving Growth Fund, and a doubling of local roads maintenance funding.
This dovetails neatly with the fact that major regional frameworks (such as Constructing West Midlands, Southern Construction Framework, and North West Construction Hub) are all up for re-tender next year. That means local pipelines, often the bread and butter for contractors outside the Tier 1 world, should be better funded and more predictable than they’ve been in some time.
Expect frameworks to become even more competitive, with more emphasis on value, sustainability, community benefit and social impact. The new Procurement Act’s shift to “most advantageous tender” entrenches this direction. For bidders, this is a moment to get very clear about their regional strategy, which frameworks matter, what differentiates them, and where partnerships can strengthen their offer.
Health-centre PPPs the quiet powerhouse of future tendering?
One of the Budget’s most significant announcements, and potentially one of the biggest streams of upcoming procurement, is the commitment to up to 250 new neighbourhood health centres in England, 120 operational by 2030, delivered through a new Public-Private Partnership (PPP) model.
This will likely create a wave of multidisciplinary competitions. Construction firms that partner early with health-solutions providers, digital suppliers, developers and FM specialists will be best placed to shape winning submissions.
This is not a traditional design-and-build pipeline. It is a whole-life, multi-stakeholder, performance-driven opportunity, exactly the kind of environment where thoughtful, coordinated bid strategy pays off.
Market fragility means procurement will favour the prepared
Construction insolvencies remain uncomfortably high. This fragility inevitably shapes buyer behaviour. Contracting authorities are becoming more risk-averse, more demanding of evidence, and more insistent on supply-chain transparency.
Even as the Budget promises growth (albeit with downgraded forecasts), departments have been directed to find £5bn in efficiencies, with only Health and Defence allowed to reinvest them. That will drive more value-for-money pressure into tenders, more emphasis on refurbishment and retrofit (especially in Education and Justice), and more competitive competitions for lower-value lots.
This is likely to create a bidding environment where clarity, risk management and proof of delivery matter just as much as price, so bid teams should make sure the bottom line isn’t the only number worth reading in submissions.
Bidders who anchor their commitments in the economic realities of the areas they’re working in will stand out. Those who rely on templated promises won’t.
The continued importance of Social Value
Social value isn’t new, but the context around it has changed dramatically. This Budget lands at a time when communities are still feeling the cost-of-living crisis, and when SMEs, the backbone of local supply chains, are grappling with rising wage bills, higher operating costs and tighter margins, particularly in light of the increased minimum wage announcement. These pressures make social value more than a scoring mechanism but a test of whether bidders genuinely understand the real-world impact of public spending.
With authorities being asked to do more with less, and local economies feeling the strain, the expectation is shifting from generic commitments to targeted, place-specific value. It’s no longer enough to promise apprenticeships or volunteering hours if they don’t respond to local skills gaps or support the SME ecosystem. Buyers want to see meaningful support for local employment, pathways that help people into higher-wage work, and supply-chain models that keep money circulating within the communities most affected by economic stress.
In this landscape, tailored social value matters as much as the asset being built. It needs to be credible, long-lasting and clearly linked to local need, not boilerplate. As budgets tighten and public scrutiny increases, social value becomes both a differentiator and a responsibility. Bidders who anchor their commitments in the economic realities of the areas they’re working in will stand out. Those who rely on templated promises won’t.
And yes, there’s a bidding lesson hidden in the OBR upload mistake
The OBR’s accidental early release of key documents was officially described as “human error”. Anyone who has ever run a bid upload knows exactly how that happens - late nights, multiple versions, tired team members, end-of-process pressure.
This is a timely reminder that the upload is part of the bid, not an afterthought. SANDBOX advocates planning collaborative upload sessions, for fresh-eyes review, and treats submission like a formal stage, not a formality. Hours of hard work, late nights and soul crushing culling to fit into word limits go into final submissions. Give them the send-off they deserve, with the correct level of oversight.
So, what does all this mean for bidders?
The Autumn Budget doesn’t transform the market. But it does set the conditions, giving pockets of strong opportunity, pockets of intense constraint, and an overall environment that rewards well-prepared, disciplined, value-driven bidders.
In practical terms, this means:
- Don’t assume funding equals tenders, map pipelines proactively.
- Prepare for value-heavy scoring under the new procurement rules.
- Strengthen cost realism and supply-chain certainty.
- Position early for regional frameworks and health-sector PPPs.
- Tailor social value commitments to leave a legacy alongside the asset handed over.
And above all, run a process that respects the fact that bidding is a team sport, right up to the final upload.
If the Budget sends any clear message, it’s that opportunity exists for teams who adapt quickly, think clearly, and deliver propositions grounded in value and certainty.
If you need support in getting match fit, call our tender team at SANDBOX.
More insights
More ideas, opinions and expertise

Health & Wellness
“Bidding without walls” – Realising the health sector opportunity through brilliant bids
Why standout bids rely on deep client insight, creative thinking, and smart use of AI to unlock time for real innovation.

Insights
Best practice for bid success – a lesson from the SANDBOX school of public sector tendering
Head of Proposals Paul Collins talks best practice for bid success with some hints and tips you can adopt when tendering for work in the public sector.