Key policy updates impacting the building controls & automation sector

It’s been a hugely impactful past few months in the building controls and automation sector, with industry policy makers implementing major changes to regulations and legislation, such as the Revised Heat in Buildings Bill in Scotland being brought forward.

To ensure its members stay abreast of all important updates, the Building Controls Industry Association (BCIA) details all the relevant industry news and decisions made by leading organisations and policy makers.

Commercial real estate set to miss decarbonisation target

Stricter Minimum Energy Efficiency Standards (MEES) are likely to come into effect in 2030. This will see owners of commercial properties needing to achieve an Energy Performance Certificates (EPC) rating of ‘B’ or above by 2030.

However, staggering research carried out by Search Acumen suggests it will take until at least 2040 for all rented commercial properties to meet this expected 2030 EPC ratings target.  

Rather worryingly, when the same research was conducted last year, the sector was set to meet the target by 2038. This suggests the pace of built environment decarbonisation has slowed in the past year and that the sector is now expected to miss the EPC ratings target by a decade.

Additionally, the research also revealed upgrades to the higher rated A*-B bands were down by 20% in comparison to 2023, the office sector has the most buildings – 5,761 – and highest proportion, 4.61%, still rated ‘F’ or lower. Only 15% of offices were above EPC ‘B’.

The slowing down of non-domestic building decarbonisation emphasises the urgent need for policy support, with the current EPC rating target for all private rented commercial buildings unachievable without further government support. Indeed, the BCIA has been calling for a balanced approach to decarbonising the sector, which includes regulations, such as higher MEES, and additional incentives, such as a decarbonisation support scheme for the commercial sector.

The HM Treasury Spring Statement 2025

With the UK currently facing a major skills shortage in the construction industry, the government has committed £625 million in England to boost skills in the sector. This is aimed at boosting existing training routes, ensuring a sustainable flow of skilled construction workers, and supporting employers to invest in training. As a result, it is expected to deliver up to 60,000 additional skilled construction workers this Parliament.

The funding will see £100 million given to support 35,000 construction-focused skills bootcamp places. This will provide a route for entrants into the industry, re-engage ‘returners’, and upskill existing employees. Another £165 million will go towards funding for providers to deliver more construction courses through the High Value Course Premium and Free Courses for Jobs.

An additional 10 new Technical Excellence Colleges that specialise in construction will be the focus of a further £100 million investment as part of the £625 million package. All Local Skills Improvement Plan (LSIP) areas will also benefit from £20 million to form partnerships between construction companies and colleges – boosting the number of teachers with construction experience in colleges.

Finally, £100 million of government funding, in addition to a £32 million contribution from the Construction Industry Training Board (CITB), will see more than 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, and T-Levels, and advanced apprenticeships.

This is likely to have a significant impact on the building controls and automation sector, with the government funding helping to address skills gaps and roll out of a range of decarbonisation technologies. Consequently, the BCIA has written to Sarah Jones MP, the government minister responsible for green skills and jobs, asking for greater support for building controls-relevant training courses. Additionally, the association attended and contributed to the non-domestic Warm Homes Plan (WHP) supply chain and skills roundtable.

WMCA Integrated Settlement Outcomes Framework

The Ministry for Housing, Communities, and Local Government (MHCLG) recently released the Integrated Settlement Outcomes Framework for the West Midlands Combined Authority (WMCA). It illustrated what the WMCA will deliver over the coming 12 months to boost economic growth, homes, transport, and jobs through its £389 million Integrated Settlement.

This money will also be used to support the three-year £167 million Buildings Retrofit Pilot. The Pilot will invest £36 million into retrofitting public buildings, cutting fuel bills for local authorities, healthcare, emergency services, and schools. Part of the funding will also focus on improving skills and training for more than 58,000 people, helping them into work or better jobs.

With building controls able to help the decarbonisation of buildings and reduce energy consumption while providing health and productivity benefits within healthcare facilities and schools, this is an ideal opportunity to ensure controls are part of the WMCA’s retrofitting plans. Additionally, having a confirmed allocation of retrofit funding rather than having to compete for a share of a limited national funding pot will give the WMCA greater certainty of funding going forward, thus providing an opportunity to take a strategic, long-term approach to building decarbonisation.

Wales Built Environment Dashboard launched

The Welsh government launched the Built Environment Dashboard in April this year. Enabling suppliers of both products and services to register, the new dashboard will serve as a procurement tool for organisations receiving government funding – whether through the Optimised Retrofit Programme, the Public Sector Decarbonisation Scheme, or other initiatives.

Any BCIA members looking to work on, or sell into, Welsh government-funded schemes, should consider signing up to this dashboard to ensure controls services are visible to organisations that have received government funding.

NHS Wales Net Zero Building Standard Alignment

Outlining the approach and guidance needed to support the delivery of net zero carbon targets within the NHS, the Welsh document for implementing the Net Zero Standard was released. This aligned Welsh carbon targets with the NHS standards. In fact, within this standard, heating and lighting controls were identified as a ‘low’ opportunity to decarbonise buildings cost-effectively.

Despite strong uptake of building controls within the Public Sector Decarbonisation Scheme and evidence showing that Class A building controls can achieve up to 30% energy and carbon savings in non-domestic buildings at relatively low cost compared to other decarbonisation technologies, the implementation of building controls is not deemed a priority within the standard. Consequently, the BCIA will engage with the NHS on these benefits and advocate for greater recognition of controls within the standard in future.

Revised Heat in Buildings Bill to be brought forward

The Acting Minister for Climate Action, Alasdair Allan, confirmed the Scottish government’s intention to bring forward a revised Bill for consideration by parliament later in 2025. This would include powers to set minimum energy efficiency standards (MEES) for owner/occupier and non-domestic properties – subject to further consideration.

Regulations would also be progressed, under existing powers, to introduce a minimum energy efficiency standard in the private rented sector, too.

Currently, there are no requirements for non-domestic buildings to meet minimum EPC standards. So, the introduction of MEES in Scotland will help drive adoption of energy efficiency improvement measures and help landlords become compliant. Conversely, without MEES, there would be no incentive for non-domestic landlords to invest in upgrading energy efficiency measures in their properties.