The recent Budget has raised eyebrows across a number of industry sectors and attracted plenty of criticism. For the building materials industry though, there are some key points that are worthy of more in-depth consideration.
The good bits
It’s always nice to start with the good bits. It is great news that fuel duty will remain frozen until 22 March 2026, as this move will likely save construction businesses up to £1079 per HGV over the course of the year.
It was also pleasing to see that significant investment will be made to boost affordable house-building, hospital maintenance programmes and heat decarbonisation projects. £500 million has been allocated to affordable house-building, while £1 billion has been set aside for remediation projects such as cladding on high rise buildings.
Finally, the apprenticeships overhaul, which will see the Growth and Skills Levy implemented, may be a positive step to reducing the skills gap and enticing school leavers to pursue BM Careers.
The bad bits
It will become more expensive to fund builders merchants jobs, as increases to the minimum wage and employer’s National Insurance contributions will constrain already tight budgets and force many businesses into financial difficulties.
This means that many will be disinclined to advertise vacant positions and invest in upskilling programmes, which could render the existing workforce unaffordable. This could be devastating for an industry which is already experiencing a significant skills gap and a high vacancy rate.
What was not included
It is surprising that the Budget did not mention the potential for timber in construction. A key building material, readily available and sustainable, failing to secure investment in this sector seems a major oversight, particularly when set against the backdrop of needing to deliver carbon efficiencies and quicker build times.
In conclusion
This Budget has certainly taken the industry by surprise and generated animated discussion. Now we can but hope that this discussion translates into workable updates and amendments that take account of the industry’s concerns and attempt to remedy them.
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