THE Spring Budget has been hailed as a ‘missed opportunity’ by the Federation of Master Builders (FMB) to build new homes and improve current ones to make them more energy-efficient.
Brian Berry, chief executive of the FMB, bemoaned the fact there were no new measures to help homeowners improve the energy efficiency of their homes.
He added, “The chancellor could have helped to close the construction skills gap ensuring the UK has the workers with the green skills needed to retrofit the UK’s homes, and provided support to help small builders deal with the administrative burden of training apprentices. All these areas could have grown the economy, instead builders got left behind – this budget was a missed opportunity.
“The chancellor’s announcement to increase the VAT threshold for small businesses from £85,000 to £90,000 is welcome but the rate has been frozen for seven years so in real terms it makes little difference.”
Peter McGettric, chairman of the British Safety Council, said the chancellor was ‘clearly’ building on his Autumn Statement with a number of measures to encourage investment in British businesses.
“This includes the cut to National Insurance, as well as a new British ISA and changes to help small businesses,” he added. “There were also further measures to support people with the rising cost of living and a welcome extension of support for those most in need, although we know inflation continues to create a challenging operating environment for businesses and individuals alike.”
Graham Harle, CEO of Gleeds Worldwide, claimed the ‘false bonhomie masking apprehension’ on the faces of chancellor Jeremy Hunt’s colleagues ‘spoke volumes’.
“With an election around the corner, if it was supposed to buy the government another term of office, I would imagine many Tory MPs will be ordering the removal van,” he stated. “Construction and property are a bell weather industrial sector as well as big employers and our numbers make for grim reading, with construction activity recording almost flat output levels in February after five months of falls. This is the core issue that the chancellor should have been addressing – how to inspire confidence, fan growth and improve productivity.
“Rather than tinker around the edges doing things like increasing the VAT registration threshold by a meagre £5K, minimal investment in housing and full lease expensing ‘when affordable’, the chancellor should look at the anaemic UK economy as needing a transfusion, not a sticking plaster. GDP is only predicted to be marginally higher this year at 0.8%, for instance. This was a budget to stop us bleeding out before the election, not a long-term recovery plan.”
Beatrice Barleon, head of policy & public affairs at EngineeringUK, welcomed the commitment to invest in sectors such as engineering and technology, and SME business, including the Green Industries Growth Accelerator (GIGA). However, the organisation said it was ‘extremely disappointed’ that there was no mention of the need to invest more and focus on skilling the future workforce.
“Without more skilled young people coming through the UK education system, UK businesses will struggle to grow and stay competitive compared to other countries,” she said. “There is an acute STEM teacher shortage affecting young people’s STEM education and therefore their ability to pursue careers in these vital sectors, yet there was no mention of teachers and how the Government intends to support them. There was also a lack of focus on how crucial training routes, such as apprenticeships, will be enabled to grow into the future, and how this will be funded.
“We renew our ongoing call for the Government to develop a clear and properly funded STEM skills plan. This should include investment in careers outreach and education, apprenticeships for young people aged 16-19 and commitment to sustaining existing funding levels for STEM teacher professional development.”
