What the UK-EU Brexit Reset Could Mean for the Construction Sector

On 19 May 2025, the UK and EU reached a landmark agreement aimed at resetting relations nearly a decade after the Brexit referendum. The deal introduces a more collaborative tone between both sides, focusing on practical improvements in trade, workforce mobility, and regulation. While some parts of the agreement—such as fisheries access—have drawn criticism, sectors like construction may benefit significantly from the renewed partnership.

Addressing a Longstanding Skills Shortage

The UK construction industry has struggled with a shortage of skilled workers since before Brexit, a situation made worse by reduced access to EU labour. According to the Construction Industry Training Board (CITB), the sector needs an additional 225,000 workers by 2027 to keep up with demand across infrastructure, housing, and commercial projects.

The new UK-EU agreement introduces two key elements that could help:

• A Proposed Youth Mobility Scheme: While not yet finalised, this would potentially allow young people from EU member states to live and work in the UK for limited periods, increasing access to much-needed labour in industries such as construction. If implemented, it could help fill shortages in trades like plastering, electrical work, and general labouring.

• Mutual Recognition of Qualifications: The agreement also outlines a path to make it easier for EU-trained workers to have their professional credentials recognised in the UK. This could reduce hiring delays and open up recruitment from a wider talent pool.

Easing Trade Friction and Material Costs

Alongside workforce measures, the deal includes steps to improve trade efficiency. For the construction sector, where delays in materials have impacted costs and project timelines, even small improvements to customs and regulatory alignment can make a difference. While not a return to single market access, the agreement aims to simplify trading arrangements in areas such as building materials and green technology.

A Mixed Response Across Industries

The agreement has not been without controversy. Some sectors, such as UK fishing, have voiced concern over new compromises made to secure closer alignment elsewhere. The inclusion of shared access to UK waters in return for cooperation in other sectors has sparked debate, particularly in coastal communities that campaigned for greater sovereignty post-Brexit.

This mixed reaction highlights the challenge of finding common ground across a diverse economy. While industries like construction and finance may benefit from increased cooperation, others feel concessions have been made that could impact their long-term future.

What This Means in Practice

For construction firms, the key takeaway is that the door to EU labour and materials may be opening slightly wider. While details are still being ironed out, the direction of travel suggests a more practical relationship with Europe—one that could help fill critical gaps in labour and stabilise project delivery costs.

This agreement doesn’t undo Brexit, nor does it signal a return to previous arrangements—but it could represent a pragmatic step forward. For a sector that thrives on certainty, clarity, and capability, that’s a positive sign.