Background
The Autumn Budget is one of the Government's principal opportunities to set out how it will support economic growth, investment and public services. Ahead of the Budget, organisations are invited to submit evidence and recommendations to HM Treasury on the measures needed to achieve the Government's priorities.
The FMB's submission focuses on the role that small and medium-sized construction firms can play in delivering the Government's ambitions on housing, economic growth, energy efficiency, skills and consumer protection. While the Government has set out ambitious objectives in these areas, the submission argues that practical barriers continue to limit the contribution of SME builders, including planning delays, difficulties accessing finance, skills shortages and rising costs.
The response sets out a series of recommendations designed to help small builders deliver more homes, improve the energy efficiency of existing housing, train the next generation of construction workers and strengthen consumer confidence in the domestic building sector.
Executive summary
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The FMB welcomes the Government's ambitions on housing, retrofit, skills and consumer protection, but argues that greater focus is needed on practical delivery.
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SME builders continue to face rising costs, planning delays, limited access to finance and ongoing skills shortages, which are restricting growth and investment.
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Local authority planning departments should receive additional support to improve capacity and help smaller developers navigate the planning process more efficiently.
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The Government should review planning-related costs and other financial burdens that can make smaller housing developments unviable.
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Government-backed finance schemes and housing delivery initiatives must be genuinely accessible to SME house builders rather than concentrated among larger developers.
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The Warm Homes Plan is a welcome step forward, but long-term funding and market certainty are needed to create a sustainable retrofit market.
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VAT relief for energy efficiency improvements should be simplified and extended to encourage more homeowners to invest in upgrading their properties.
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Financial incentives should be introduced to support owner-occupiers who wish to improve the energy performance of their homes.
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The Government should support skills academies and other initiatives that help develop the workforce needed to deliver housing and retrofit at scale.
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SMEs need greater support to take on apprentices, including help with the administrative burdens associated with apprenticeship training.
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A UK-wide network of Build Academies should be funded to help young people who are not in education, employment or training (NEET) move into construction careers.
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Consumer protection reforms should be proportionate, affordable and designed to support effective dispute resolution before escalation to formal redress schemes.
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The Government should conduct a full assessment of the costs associated with any new consumer protection framework before implementation.
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The FMB continues to support the introduction of mandatory licensing for domestic building companies to improve competency, raise standards and protect consumers.
