The Chancellor has been accused of missing a key opportunity to support Britain's building sector after failing to reverse tax measures introduced by his predecessor, Rachel Reeves. Steve Mulholland, chief executive of the Construction Plant-hire Association (CPA), said John Healey had "let the chance pass" to undo policies that are squeezing family firms and stalling new developments.
Chancellor Accused of Failing to Back Builders
Speaking after the autumn Budget, announced on Wednesday, Mr Mulholland gave a critical assessment of the Treasury's fiscal plan. "Today was the Chancellor's chance to put right the damage done by Rachel Reeves's Budgets and back the firms that build Britain's homes. He has let it pass," he said. "John Healey has done little to bring growth back to the British economy."
The decision to keep the rise in employers' National Insurance and the inheritance tax changes for family businesses, alongside the Employment Rights Act, is expected to hit hiring and investment. Official figures showed housebuilding output fell by 11.5% in August compared with the same month a year earlier.
Tax and Red Tape Burdens Remain
Industry leaders have voiced anger over the combination of taxes left by Ms Reeves, warning it is harming the firms needed to address the housing crisis. A central grievance is the employers' National Insurance rise, with a 15% rate and a reduced £5,000 threshold effectively adding a tax to every hire. Family-run businesses are also concerned about inheritance tax reforms, with Business Property Relief capped at £1 million, putting plant-hire yards and specialist subcontractors at risk.
The Employment Rights Act has added further costs and day-one liabilities, leading bosses to say that taking on an apprentice or adding to a site crew has become too expensive and too risky. Mr Mulholland warned that the sector cannot survive further drift without urgent relief on payroll and succession taxes.
Budget Measures and Missed Relief
Instead of addressing payroll taxes or repealing the family business inheritance tax reforms, Mr Healey scrapped Ms Reeves's plan to cut the Cash ISA allowance from £20,000 to £12,000. He also introduced a £100 energy rebate for Band A to D homes and a VAT break on electricity bills.
Drivers and truckers received support with another freeze on the 52p fuel duty rate, while pubs, shops and restaurants gained a break on business rates. However, no measures were announced for construction yards or plant-hire depots. Bosses now face a 3.9% increase in the minimum wage, raising payroll costs further, although the threshold at which small companies start paying rates will rise from £12,000 to £18,000.
