Post-Budget Blues: Rising Costs and What Comes Next

The recent U.K. budget and its impact on the economy with the recent Bank of England survey has been all over the headlines. If you’re anything like the clients we’ve spoken to, you’re probably feeling a bit battered by the news. We’ve heard the same thing again and again: these rising employment costs couldn’t have come at a worse time.

Between the jump in the National Minimum Wage and higher employer National Insurance contributions, costs are climbing fast. And for many of you, the big question is this: how do you keep things moving, protect your margins, and manage your teams — all while staying on track for the future?

We’ve been thinking about this too. Sitting down with James (our CEO) and Alistair (Solutions Director), we talked about what these changes mean and how we can all navigate the road ahead.

“It feels like we’ve been punched in the stomach.”

Let’s be honest - this budget landed hard. James didn’t hold back: “The last thing you needed was more costs piled on top. It’s been tough enough dealing with COVID, inflation, and all the uncertainty. This budget feels like being punched in the stomach just as things were starting to look up for next year.”

Alistair brought it back to the reality of what many of you are dealing with: “For a lot of our clients, there’s no option to offshore or shift work elsewhere. If you’re building a railway, upgrading a water system, or delivering major energy projects, the work has to happen here. So how do you handle rising costs without slowing down or cutting back?”

And we’ve heard your concerns about the bigger picture, too. As James said: “It’s not just about the costs for our clients. Slower hiring and more offshoring hit people’s jobs, and that has a ripple effect. It’s frustrating when the policies being made don’t seem to reflect what you’re actually up against.”

What can you do now?

It’s not an easy time, but there are steps you can take to stay ahead. Here are three practical ideas we’ve been discussing:

1. Look at where you can get smarter and more efficient. James mentioned that the Chancellor’s basically said ‘Get more productive, or take the hit.’ But after years of squeezing margins, it’s not as simple as that. Now’s the time to really focus on making processes better, cutting out inefficiencies, and seeing where automation or tech can take some of the strain.
2. Invest in training and grow your talent. Alistair had a strong point here:“One of the best ways to handle this is to build up your team from within. We’ve seen this work time and again — bringing in people with the right attitude and training them on the job. Not only does it help with costs, but it also builds your future pipeline of skilled workers. It’s a win-win, especially when there’s always pressure to close the skills gap.” We’ve already seen clients adopt train-to-deploy models, where new recruits gain practical experience while working on live projects. It’s not just about filling roles; it’s about creating a workforce that can grow with you.
3. Be flexible with your workforce. Flexibility can be a game-changer, as Alistair pointed out: “A mix of permanent employees and project-based workers gives you room to adapt. It’s not just about cutting costs - it’s about being agile, so you’re ready to handle changes and still deliver quality work. And don’t forget, investing in upskilling contingent workers can have a big impact too.”

“It’s not all doom and gloom.”

While the budget has made things harder, there are still plenty of reasons to feel positive about the future. James said it best: “The need for greener energy and sustainable infrastructure isn’t going away. In fact, it’s only growing. If you can align what you’re doing with these big-picture goals, there are huge opportunities ahead.”

Alistair added: “We’ve seen this time and again. If you focus on innovation, invest in your people, and take a long-term view, you’ll find a way to adapt and thrive. This sector has always found ways to push through the challenges.”

Our Perspective: A Tough Road, But Full of Opportunity

The challenges posed by this budget are significant, but they don’t define the future of critical infrastructure.

This sector has always been resilient, and the opportunities for innovation and growth remain strong. The push toward net zero, the demand for greener energy, and the need for sustainable infrastructure present clear paths forward for businesses ready to adapt.

The way ahead will require a balance of short-term problem-solving and long-term thinking. For many, this means investing in smarter workforce solutions, building talent pipelines through training and development, and embracing flexibility in how work is delivered.

We’re here to help critical infrastructure companies find the right solutions to meet these challenges. Whether it’s through MSP, RPO, train-to-deploy programs, contingent staffing, or embedded resource models, we’re committed to helping businesses get work done sustainably and efficiently.