The Builders Merchants Federation has offered a mixed response to the Budget announcement, critiquing “we needed to see a jumpstart to get the sector moving.”
John Newcomb, BMF CEO, said: “Our concern is that this Budget represents the delivery of small incremental measures. We needed to see a jumpstart to get the sector moving.
“The Budget has not done enough to bridge the gulf between the Government’s ambition to build 1.5 million new homes by July 2029, and the state of today’s market. There’s a significant gap between what the Government has proposed and what is being achieved out on the ground.
“We have stated that without Government intervention it was going to be difficult to move out of a stagnant market, so it’s disappointing to see no incentives to help first time buyers and stimulate the housing market.”
“And of major concern to our members and the wider economy is the Chancellor’s commitment to Inheritance Tax.”
John continued: “The Government is adding headwinds, with issues such as the increases to the National Living Wage and National Minimum Wage, as well as the impact of the Extended Producer Responsibility for Packaging Waste, having a knock-on effect on investment and growth.
“And of major concern to our members and the wider economy is the Chancellor’s commitment to Inheritance Tax. A minor alteration has been made for spouses so that any unused £1 million allowance for the 100% rate of Business Property Relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
“That will not change the position we hear across the industry that the changes in inheritance taxation could limit the future of the sector, with many private and family businesses across our membership reporting back that the impact of Business Property Relief will damage enterprise.
“The end result could be a scaling back of the operations at SME merchants, suppliers and even builders in light of the changes, and that will have a significant impact on the whole economy.”
And while the BMF feels the Budget lacks the ambition to boost economic growth and regional prosperity, it does welcome some moves made by the Chancellor.
“The move to make training for under 25 apprenticeships completely free for SMEs is also a positive step.”
John added: “There were positive outcomes in some areas of the Budget. That includes moves to create developments around train stations and other transport hotspots, which will support the earlier announcement of at least three New Towns in Bedfordshire, Leeds and Enfield this Parliament.
“The Chancellor’s announcement on Landfill Tax is also welcomed, as this is something the BMF, alongside other associations, petitioned for, with the Government now not proceeding with transitioning to a single rate of tax by 2030, and retaining the exemption for quarries with disposal permits.
“The move to make training for under 25 apprenticeships completely free for SMEs is also a positive step. Co-investment payments that SMEs have had to pay now for apprentices under the age of 25 will be scrapped, and we support an extension of the temporary five pence Road Fuel Duty being cut for an extra five months, which offers a further fuel duty freeze.”
John concluded: “However, looking at the situation overall, the difference between what the Government says it will do and the implementation and delivery is a major concern. We are looking more at the detail, but the feeling is that more could have been done to get Britain building.”
