A builder who runs a firm in Greater Manchester has criticised the Budget for doing "next to nothing" to help sole traders, whom he described as "the backbone of Britain".
Adam Healey, 44, has run building firm IMR Services in Marple near Stockport for 12 years to support his wife and two children aged 9 and 11. He said he encounters a mixed bag of fellow tradespeople, and although most have plenty of work lined up, some are struggling with increasing costs.
He had hoped the October Budget would boost the "white van man" by reducing their income tax burden as new Making Tax Digital laws mean paying HMRC more often, and by cutting VAT to help his customers, while hoping for cost-of-living aid on reducing energy, water and food bills to help his family.
Disappointment over 'tiny, insignificant' measures
Adam told the Express: "I'm really disappointed by this Budget. Instead of tackling the big issues they have tackled lots of tiny, insignificant ones. Making tax digital means many sole traders like me are having to pay accountants to keep on top of the admin, plus instead of paying once or twice a year we are paying every quarter."
He added: "Labour could have raised the tax free allowance, or reduce income tax levels for sole traders to encourage more people out of work to start a trade but they did nothing. And as a family man where are the efforts to reduce my food bills? They have cut the gas standing charge but the amount I will save a year is almost the cost of a couple of meals and drinks in the pub."
Adam said the traditional "White Van Man" is a sole trader who works all day and goes home to his family, seeing his earnings go on food, energy and water costs. He said: "You cannot separate the 'home' from the 'work'."
Impact on tradespeople's businesses
Adam said while some trades are often "DIY proof" like complicated builds, plumbing or electrical works, a decorator he knows has had jobs cancelled as customers have no spare cash, forcing them to try to paint or wallpaper their homes themselves to save money.
Dean Laming, MD at specialist construction insurance provider Tradesman Saver, told us: "Rising costs and limited financial support are doing more than squeezing tradespeople's weekly budgets. They're stopping small businesses from investing in their own growth."
He added: "Tradespeople need the confidence and financial headroom to invest in their businesses again. Supporting them to do that will have benefits far beyond the trades themselves."
Research reveals top priorities for tradespeople
Tradesman Saver carried out research ahead of the Budget to see what tradespeople wanted from Labour to help their businesses grow and boost the economy. Top of the list was income tax relief or allowances (38%), followed by lower fuel duty or support with transport (36%), and increased tax relief on tools, equipment and vehicles (35%).
Tradespeople also wanted to see lower National Insurance contributions (27%); simpler tax rules (27%); grants or tax relief for upskilling and qualifications (18%), and better support with interest rates, borrowing, or access to finance (17%). Almost a third (30%) added that the Government could provide greater financial support during periods of illness or injury.
The report found that rising business costs mean 79% of tradespeople are currently having to balance or compromise on at least one business decision that is preventing them from growing their business. More than a third (37%) said costs are influencing decisions about which jobs they take on, with many turning down work and sacrificing income because the costs associated make it less viable.
Almost a third (30%) are weighing up whether to buy new tools and equipment, while one in five (19%) are reconsidering investment in further training and qualifications. A further 18% said financial pressures are affecting decisions about hiring people, and the same amount are cutting back on advertising and marketing to find new work.
Fuel and transport costs came out as the biggest financial pressure, affecting 45%, followed by household inflation (39%) and energy bills (34%). The cost of tools and equipment is a concern for almost a third (29%); just over a quarter (26%) said income tax, and a fifth (20%) said they are being affected by late or missed customer payments.
