The Royal Institution of Chartered Surveyors (RICS) has outlined a list of recommendations for the Treasury, ahead of the Autumn Budget
RICS has stated that the Autumn Budget is an opportunity for the government to truly modernise economic and regulatory framework through their recommendations.
Many in the industry are bracing for the budget, as it is expected that the chancellor will announce a rise in taxes, which will likely affect the industry.
“A critical moment to reshape the built environment”
The recommendations RICS makes are as follows:
1. Transforming Business Rates
RICS supports property-based taxation but calls for a comprehensive reform of the business rates system to ensure fairness and competitiveness. The UK currently has one of the highest levels of property taxation globally, placing domestic businesses at a significant disadvantage.
RICS therefore recommends:
- Reducing the overall burden of business rates, shortening valuation gaps, and simplifying the system.
- Modernising administration through improved government digital services and efficient data collection.
- Strengthening the Valuation Office Agency’s resourcing and promoting professionalism in the business rates sector by addressing ‘rogue agents’ and encouraging engagement with regulated professionals.
- Introducing targeted incentives within the business rates framework to encourage sustainable investment and support the transition to net zero.
2. Supporting High Streets and Local Economies
A fairer and more transparent business rates system must promote investment across all commercial uses and regions.
RICS recommends:
- Allowing councils to retain a greater share of local business rates revenue to fund reinvestment and regeneration initiatives, aligning with the English Devolution and Community Empowerment Bill.
- Providing incentives for mixed-use conversions, such as time-limited rate reliefs and targeted tax incentives to transform vacant or underused commercial premises into productive spaces that revitalise local economies.
3. Unlocking a Green Economy
The transition to net zero represents both an environmental imperative and a major economic opportunity. However, uncertainty around Minimum Energy Efficiency Standards (MEES) and inconsistent retrofit quality continue to deter investment.
RICS calls for:
- Clarity and certainty on energy performance regulations, confirming EPC C targets for residential and EPC B for non-domestic properties by 2030.
- Financial support packages to help property owners meet MEES requirements.
- Professionalised retrofit practices, ensuring consumers and public funds are protected through qualified, evidence-based advice from RICS-regulated practitioners.
- Robust monitoring and compliance mechanisms to build confidence in green schemes and ensure quality outcomes.
4. Planning Reform to Generate Growth
Planning reform must deliver both efficiency and fairness.
RICS recommends:
- Mandating adoption of the RICS Professional Standard on Compulsory Purchase across all acquiring authorities to enhance transparency, reduce disputes, and cut costs.
- Embedding structured mediation within the planning process, particularly for Section 106 negotiations, through Alternative Dispute Resolution (ADR) to improve outcomes and speed up delivery.
The industry is nervously waiting
Last month, the Construction Products Association released their Autumn Forecast, which lowered expected construction output to 1.1% in 2025 and 2.8% in 2026, down from the previous forecast’s 1.9% and 3.7%.
CPA head of construction research, Rebecca Larkin, said: “The pickup in construction activity that had been expected at the start of the year has not materialised as uncertainty continues to hold back house purchases, home improvements spending and private sector investment decisions. The risks and uncertainties around the impact of impending tax rises in the Autumn Budget in November have only intensified and this is likely to leave households and businesses holding off spending and investment for longer, and limit demand in the largest construction sectors.
“The effects of pre-Budget uncertainty are being felt now but the impact of the Budget tax rises will be felt most strongly as we head into 2026. Currently, the forecast is for 2.8% growth in construction output next year, primarily driven by public sector construction, infrastructure and house building. However, the extent of the government’s tax rises and spending cuts, and who bears the brunt of them, will heavily determine whether 2026 is a year of growth or contraction for the industry.”
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