Spotlight: Grid readiness, data centre covenant and devolution

All eyes were on the Budget this week, and you can read our full analysis here.

Beyond the Budget, Jacobs’ report The Energy Readiness Equation finds that most UK energy infrastructure leaders see grid readiness as one of their biggest delivery barriers. While 69% think that enough capital is available, only 31% think there are enough investible projects.  

In infrastructure, AI firms say the UK has a year to head off widespread public opposition to data centre development. The Chancellor’s new “data centre covenant” responds to these concerns, setting expectations on local investment, jobs and water protection in return for a clearer route to grid connections.

In development, the standardisation of planning decision-making is about to take effect in England. Together with the Chancellors promise to maintain building regulations during this parliament and remove biodiversity requirements on brownfield land, it offers the sector some stability, though Mace Consult warns that delivery capability will decide whether devolution turns into construction growth.

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Spotlight on next week:

• Parliament will hold a number of notable debates next week, including:  

• Oral Questions to the Ministry of Housing, Communities and Local Government (Monday, 2.30pm)

• Continuation of the Budget debate (Monday and Tuesday)

• Westminster Hall debate on the use of agricultural land for solar panels (Tuesday, 4pm)

• Oral evidence to the Transport Committee in regards Delivering East West Rail (Wednesday, 9.15am)

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This week’s headlines:

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ENERGY

TOP STORY: The Energy Readiness Equation | Report from Jacobs

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Jacobs surveyed 600 energy leaders across five countries, and UK leaders were more likely than those elsewhere to rank grid readiness as a top three barrier to delivery. Policy uncertainty and permitting or land constraints were also major concerns. While 69% of UK leaders thought enough capital was available for the energy sector, only 31% thought there were enough investable projects, a 38-point gap that points to the grid and consenting, rather than funding, as the constraint.

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We’ve also been reading:

✒️ What the Autumn Budget 2026 means for your energy bills | Press release from Department for Energy Security and Net Zero

✒️ Chancellor abolishes standing charges on gas bills to make payments fairer | News story from Prime Minister's Office, 10 Downing Street, HM Treasury, Department for Energy Security and Net Zero, The Rt Hon Andy Burnham MP, The Rt Hon John Healey MP and The Rt Hon Miatta Fahnbulleh MP

✒️ DESNZ Public Attitudes Tracker: Renewable energy, Summer 2026, UK | Report from Department for Energy Security & Net Zero

✒️ Gwyndod supply chain mobilised to deliver UK’s first SMRs | Press Release from Great British Energy

📰 Autumn Budget: Energy costs tackled and Cost of Charging review recommendations announced | Transport + Energy

📰 Homes across UK to get low- or no-interest loans to fund solar panels and heat pumps | The Guardian

📰 Sizewell C branded 'terrible deal' for taxpayers by MP committee | BBC News

📰 'It's offensively cheap': How solar power is quietly becoming bigger than nuclear | BBC News

📰 Chris Stark: climate goals and cheaper energy can be squared | Net Zero Investor  

📰 Elgin to invest $531m in five UK solar and storage projects | Energy Monitor

📰 Cubico’s Frodsham Solar project granted development consent in the UK | Energy Global

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INFRASTRUCTURE

TOP STORY: 📰 AI firms say UK has a year to head off datacentre protests before construction is threatened | The Guardian

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Ahead of the Budget, AI companies told ministers the UK has about 12 months to head off US-style opposition to data centres, citing dry summers, rising energy bills and wider AI safety concerns. The Chancellor responded with a “data centre covenant”, under which developers must invest in local communities, job creation and protecting water supplies. In return, compliant projects will have a clearer route to the grid connections and can build on-site generation while waiting for those connections. Local authorities in AI growth zones can already keep the extra business rates they generate.

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We’ve also been reading:

✒️ Record funding, record results: 7,000 miles of smoother journeys as government tackles potholes | Press release from Department for Transport and The Rt Hon Heidi Alexander MP

📰 Budget 2026: Healey unveils data centre deal in bid to keep Britain’s AI data in the UK | City AM

📰 £750bn infrastructure pipeline to set direction for decade of investment | Water Magazine

📰 UK Infrastructure Uncertainty Hurting Investment, Businesses Say | Bloomberg

📰 Consent integration can bridge the gap between DCOs and delivery | pbc today

📰 Reliability is the new innovation in UK water infrastructure | Water Magazine

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DEVELOPMENT

TOP STORY: ✒ Delivery capability key to turning devolution into construction growth | Report from Mace Consult

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A report from Mace Consult has argued that devolution could strengthen regional pipelines across housing, transport and public services, but warns that greater local powers alone won’t get projects off the ground. With construction output down 1.0% in the three months to August, new orders falling for a third consecutive quarter and material price inflation at 6.4%, delivery concerns persist despite the promise of greater local powers to support projects.

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We’ve also been reading:

✒ PM puts communities first in government investment rules shake up | Press release from HM Treasury, Prime Minister's Office, 10 Downing Street, The Rt Hon Andy Burnham MP and The Rt Hon John Healey MP

✒ The Data Centre Covenant | Policy Paper from HM Treasury

✒ RSH publishes annual social housing stocks and rents statistics | Press Release from The Regulator of Social Housing

📰 Budget 2026: Healey steps in to help ailing housing sector  | Building

📰 Budget reaction: ‘We are trapped in a viability doom loop’| Architects Journal (paywall)

📰 Budget 2026 reaction: Social housing funding welcomed but viability concerns persist | Housing Today

📰 OBR cuts housing forecast by 190,000 homes over next five years | Housing Today

📰 Autumn Budget 2026: Major building regulation changes ruled out for remainder of Parliament | The Intermediary

📰 Brownfield BNG exemption announced in Labour Budget 2026 | Planning Geek

📰 Standardisation of planning decision-making to take effect in England | Pinsent Masons

📰 Government announces increase in shared ownership income caps | Inside Housing (paywall)

📰 Earnings limit of up to £140K for first-time buyers loan scheme | BBC News

📰 New UK home building slumps as housing industry faces 'critical point’ | The Independent

📰 Landsec and British Land mothball giant projects | Inside Housing (paywall)