The construction industry is increasingly aligning with government ambitions to boost skills, strengthen regional economies and deliver greater long-term value, according to new research published by SCAPE in partnership with Social Value Portal.

Published today in partnership with Social Value Portal, the sixth annual Social Value Benchmarking Report analyses social value activity from 445 construction and civil engineering projects delivered across England, Scotland and Wales during 2025, providing insight into how policy, procurement and industry priorities are shaping the delivery of social value across the built environment.

The report suggests the construction sector is evolving its approach to social value measurement, with a growing focus on evidencing meaningful impact and long-term community outcomes alongside value for money. Similar to last year’s report, employment, skills and local economic growth remained the dominant focus of social value delivery in 2025, with local jobs and spend accounting for 97% of social value generated.

Investment in training and apprenticeships increased substantially during 2025, with the number of apprenticeship and training weeks rising by 43% year-on-year to more than 40,500 weeks nationally. Local employment opportunities were delivered across more than half of all projects analysed.

The findings come at a time of significant change across public procurement and local growth policy. The introduction of the Procurement Act 2023, alongside the overhaul of Procurement Policy Notice (PPN) 026 which doubled the social value weighting to 20% for contracts over £5m, is placing greater emphasis on ensuring projects deliver wider social, economic and environmental outcomes.

The findings point to growing industry recognition that addressing skills shortages and developing future talent is essential to delivering the UK’s long-term construction and infrastructure ambitions. This also links to one of the government’s priorities to boost youth employment, with the recent introduction of early technical pathways.

The report also highlights the growing importance of supporting local businesses and strengthening regional supply chains. Spending with local micro, small and medium-sized enterprises (MSMEs) increased by 12% year-on-year to £407m. These findings point to a growing focus on strengthening local supply chains, supporting smaller businesses and retaining economic value within communities.

Regional findings further reinforce this trend. The North East recorded one of the strongest performances nationally, with social value rising by 235% year-on-year, while the East of England more than doubled social value delivery compared with 2024. Scotland recorded the highest adoption of employment and skills-related measures, aligning closely with the country’s Community Wealth Building agenda. The North West remains one of the strongest contributors to the report, with findings indicating a mature regional market where organisations are routinely delivering social value across a broad range of projects.

The research also points to growing momentum behind environmental outcomes. Carbon savings increased by 560% year-on-year, while waste diverted from landfill rose by 161%, reflecting increasing attention on carbon reduction, resource efficiency and circular economy principles throughout project delivery.

Looking forward, the report highlights that the industry’s shift towards measuring impact rather than relying solely on monetised social value is changing how contractors and clients approach social value in practice. Social value is increasingly being used not only to support people into employment, but to engage with future generations before they enter the workforce. Alongside wider government investment in skills, including £625 million for construction workers and £182 million for engineering, it signals a continued focus on developing the workforce required to support future economic and infrastructure delivery.

Alison Ramsey, Senior Social Impact Manager, said:

“We can see that the construction industry is increasingly responding to the challenge set by government to deliver more than just buildings. We’re seeing a growing commitment to developing skills, supporting local businesses and ensuring regional investment generates lasting benefits for communities. Procurement has a critical role to play in that transition, directing investment towards regional supply chains to create the conditions for long-term economic growth. As the UK looks to deliver major infrastructure, housing and regeneration ambitions, the sector’s ability to create jobs and support regional resilience will be crucial. These findings suggest the industry is moving in the right direction.”