Responding to the Budget Speech, the Builders Merchants Federation has welcomed the Chancellor’s confirmation of support for first-time buyers through the new £4.7bn Your First Home scheme, and his announcement of £1.5bn additional funding for the Social and Affordable Homes Programme, which will support the delivery of 10,000 extra affordable homes.
However, while the BMF also welcomed measures supporting business, including cuts to fuel and energy costs, it warned that the cumulative burden of increased regulation and taxes still heavily impacts the cost of doing business. Employment costs continue to rise, as evidenced by the latest 3.9% increase in National Minimum Wage and National Living Wage.
BMF CEO, John Newcomb said: “As trailed in the national media beforehand, today’s Budget had a ‘steady as you go’ quality. While it included a number of helpful announcements, such as confirmation of Your First Home, increased funding for social housing, an extension of the Road Fuel Duty reduction, and a scheme to cut bills for intensive electricity users by up to 25%, much of it restated previously announced measures rather than introducing new ones.
“Employment costs are a real concern for many in our industry, particularly at a time when merchant sales are flatlining at best. The latest above-inflation rises to both the National Minimum Wage and National Living Wage do not bode well for increased recruitment, particularly amongst young people in the lead-up to the long-awaited Alan Milburn Review on Young People & Work.”
John continued: “It seems that the main policy content is being held back for the Prime Minister’s 10-year Plan, which is due in December. What is really needed are policies that reduce the cost of doing business in the construction industry, encourage investment in people, skills and innovation, and make projects financially viable to undertake.”
