The Chancellor’s latest Autumn Budget has prompted widespread discussion across the industry – and within PTSG, we have been assessing what the announcements mean for our people, our clients and the wider facilities management community.
Rising employment costs remain a defining challenge
The continued rise in the National Living Wage will support many households, but it also represents a significant shift in the employment landscape. The new rate pushes entry-level roles close to salary levels that were, until recently, associated with more experienced operational or administrative positions. This compression of pay bands is creating upward pressure across the entire workforce.
For employers in FM – an industry that already faces tight margins—this compounds existing cost pressures, especially when combined with unchanged National Insurance thresholds and changes to pension salary sacrifice rules. The combined effect is clear: careful workforce planning, selective recruitment and a renewed focus on productivity will be essential.
A likely acceleration of technology and efficiency programmes
With people-related costs rising faster than revenues in many FM contracts, organisations may lean more heavily on technology to close the gap. Digital tools, automation and smart systems will increasingly be used to maintain service levels and protect client budgets. For PTSG, this reinforces the importance of our ongoing investment in digital reporting, smarter workflows and integrated compliance solutions.
Electric vehicle policies: progress mixed with uncertainty
The extension of the Electric Vehicle Grant and increased funding for charging infrastructure is welcome news for service providers with large vehicle fleets. However, the proposed introduction of pay-per-mile charging for EVs introduces uncertainty at a time when businesses need clarity to continue investing in cleaner transport.
For FM providers operating nationwide – PTSG included—scalable, reliable charging infrastructure remains critical. We welcome the government’s commitment to additional investment, but stability of policy will be key if businesses are to fully transition to lower-emission fleets.
New opportunities through community infrastructure investment
The government’s plan to deliver 250 neighbourhood health centres through public-private collaboration could stimulate demand for FM expertise across fire, electrical, mechanical and compliance services. Effective PPP models could create a healthy pipeline of long-term contracts – provided lessons are learned from past programmes and procurement processes remain efficient and fit for purpose.
The mention of broader PPP involvement in new towns and renewable schemes suggests further potential growth areas for FM suppliers in the years ahead.
Retail and hospitality remain under pressure
Despite targeted reliefs for high-street businesses, rising employment costs and a business rates system still in transition mean that retail and hospitality operators continue to face difficult conditions. This will have knock-on effects for FM providers servicing those estates, where clients may increasingly prioritise efficiency, bundled services and compliance-led maintenance.
What this means for PTSG and the sector
Overall, the Autumn Budget represents a mixed picture for the FM industry:
- Employment cost pressure is intensifying, placing renewed importance on productivity, technology adoption and flexible service delivery models.
- Environmental and fleet incentives show promise, but future clarity on road charging will be essential.
- Infrastructure investment could generate valuable opportunities, particularly in health, energy and public-sector estates.
For PTSG, the Budget reinforces the direction we are already moving in:
continued investment in people, smarter systems and integrated service delivery that helps clients navigate tightening budgets while maintaining safety, compliance and operational continuity.
