SMALL building firms may not be able to shoulder the burden of increased business costs if the UK Government increases employers’ national insurance contributions, the Federation of Master Builders (FMB) has warned.
Brian Berry, chief executive of the FMB, said, “Many tax rises are being mooted in the upcoming budget with employer national insurance contributions widely tipped as a given. Any increase in employers’ national insurance contributions would hinder small building companies from growing, especially if this is coupled with wage rises.
“Small building companies’ costs have gone up and up and this is impacting their bottom lines. Over half of FMB members are reporting that their businesses are on track to make a loss and over a quarter reporting that they are restricting the hiring of new staff. If the government is serious about economic growth, it should be empowering and not undermining those companies that are seeking to build the much-needed new homes and make the existing ones more energy efficient.
“If the government wants regional economic growth, then it should consider incentivising homeowners to make their homes more energy efficient. This would benefit every community across the country. We know improving the energy efficiency of private homes could grow builders’ businesses and supply chains especially in the country’s historically under invested areas.
“The current tax system also doesn’t help and needs addressing. Complex VAT arrangements are leading to homeowners missing out from benefiting from cheaper energy efficiency installations, as the paperwork is too onerous for them or the builder!
“While I don’t expect housebuilders to receive much in the budget, it would be good for smaller house builders, who have been in sharp decline, to see something to help them regain market share. A commitment to significantly boost planning officer numbers and encourage more into the public sector in the long term would be welcome news. While I acknowledge commitments have already been made in this area, they barely scratch the surface.”
