Cheltenham MP Max Wilkinson recently visited George Bence & Sons, a well-known and long-established business in the town, as part of the Builders Merchants Federation’s industry and parliament programme.
The aim of the initiative is to show MPs the role, value and importance of merchants in delivering for their customers and communities with the topic of how the building materials’ supply chain is evolving to support housebuilding and existing homes a key focus of discussions – in addition to the trading prospects for 2025, not least following the proposals relating to National Insurance contributions, Business Property Relief and Inheritance Tax as set out in the Budget last year.
The Liberal Democrat MP, a former Borough Councillor, was welcomed by Managing Director Paul Bence and Commercial Director Carlwyn Coombes. Touring the branch, he was shown examples of the everyday trade essentials and value-added products available to Bence’s customers in Gloucestershire and Herefordshire. The MP also heard how merchants and their SME customers have managed in recent times with higher prices and rising fuel, labour and other costs.
Concluding his visit, Max Wilkinson MP said: “It was a pleasure to visit Bence Builders Merchants to see how they trade sustainably while serving their traditional house-building and repair & maintenance markets. It is heartening to see a local family-run business, that (last summer) marked its 170th anniversary, facing the future and keeping up-to-date with the needs of its trade customers and property owners.
“I want to thank Paul and his team for helping SME builders and DIY enthusiasts with their building and home improvement projects, and for giving me the chance to see for myself their contribution not only to Cheltenham’s economy, but also more widely around The Cotswolds.”
Max added: “I was particularly concerned to hear about the pressures being faced by the business and the impact that is likely to have in the coming year. I share Paul’s concern about the increased cost burden being faced by small businesses – not least the increase in Employers’ National Insurance Contributions. That will certainly make the lives of many SMEs much more difficult, particularly after years of economic turbulence.”
In turn, Paul expressed his concern at the Autumn Budget regarding changes to Inheritance Tax and the application of Business Property Relief that directly affects merchants like George Bence & Sons. The Chancellor of the Exchequer is capping the tax relief at £1 million, with Inheritance Tax charged at 20% on the value of the business in excess of this £1m threshold.
He explained that his is a sixth-generation business, founded in 1854, and owners naturally want to pass their firms onto their children “but Rachel Reeves’ changes do not encourage that anymore.” Consequently, he added, some employers may choose to defer or cut planned investment, review stock levels and staff numbers (especially apprentices) and look at opening hours.
The Builders Merchants Federation, which represents more than 1,000 merchants, manufacturers & distributors, predicts a huge impact on the future of private businesses. 75% of its members are family-owned, small local independents with an annual turnover of less than £12½ million.
Paul commented: “We were pleased to welcome Max today and show him how Bence Builders Merchants has evolved since we began in 1854. It is great to have our MP take an interest in local firms like ours and offering his insight and support to help Gloucestershire businesses to keep going.
“Running a successful business is far harder than it was back then. The burden of regulation and taxation on today’s owners makes it more difficult and time-consuming to be a financially stable business, offering good jobs, and paying our way as a good local employer.”
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