The UK government has outlined plans for over £700 billion of infrastructure investment over the next decade, spanning energy, transport, water, housing and defence, and covering hundreds of major projects.
Alongside this, industry data from Glenigan indicates that civil engineering activity – particularly in projects under £100m – is expected to see solid growth into 2026.
Major programmes are already moving forward, including:
- Road Investment Strategy 3 (2026–2031)
- AMP8 water investment period
- Ongoing rail and transport upgrades
- Large-scale projects such as the Lower Thames Crossing
The pipeline is visible, long-term, and meaningful for businesses across the civil engineering supply chain.
The constraint isn’t the opportunities – it’s readiness
Analysis from PwC highlights a key shift: the constraint in UK infrastructure delivery is increasingly delivery capacity rather than intent.
Plant availability, skilled operators, and the ability to mobilise quickly are now the limiting factors.
For civil engineering contractors, that creates a clear commercial reality. The businesses best positioned to win work are those that can demonstrate they are resourced and ready – not those scrambling to put funding in place after award.
Finance that matches how civil engineering works
For businesses building capacity ahead of confirmed contracts, revolving credit facilities are one of the most effective funding structures available.
An agreed funding line allows you to:
- Secure access to capital in advance
- Draw funds only when equipment is needed
- Move quickly when projects land
The result is simple: when work arrives, plant follows within days – not weeks.
And because funding is structured in advance, terms are typically stronger than last-minute arrangements made under pressure.
The AIA still works in your favour
Civil engineering plant typically qualifies for the Annual Investment Allowance (AIA) – allowing 100% tax relief on qualifying expenditure up to the current threshold.
Under Hire Purchase, this relief is available even when the asset is financed rather than purchased outright. That means:
- Preserving working capital
- While still accessing the full tax benefit
With changes to capital allowances coming into effect from April 2026, early planning of capital expenditure is becoming increasingly important.
Build your plant strategy now
The infrastructure pipeline is not a short-term spike – it’s a sustained opportunity.
The contractors who benefit most won’t be the ones reacting to it. They’ll be the ones who planned for it.
What makes First Business Finance different?
It starts with the people – One dedicated point of contact.
In a market that’s becoming increasingly process-driven, our clients value having one, knowledgeable person who knows their business and is always at the end of the phone.
We take the time to structure funding properly – so it supports how the business operates and grows.
Because getting funding isn’t the challenge.
Getting the right funding is.
Call our team to discuss any funding requirements you may have.
If you want to talk through how to structure your plant finance or any funding requirements you may have, call us on 01634 386869.