The Government must ensure that the rise in the National Minimum Wage, announced by Chancellor of the Exchequer John Healey in his Budget, does not make it harder for small building firms to recruit, train, and retain the people needed to deliver the homes and improvements the country needs, says the Federation of Master Builders (FMB).
Responding to the Chancellor’s Budget, FMB Scotland has said that fair pay must be matched by practical measures that help smaller employers absorb rising labour costs. The FMB also welcomed support for first-time buyers and the continuation of the fuel duty freeze, while warning that housing measures must work for SMEs as well as the largest developers.
Gordon Nelson, FMB Scotland Director said:
“The Chancellor missed the opportunity to boost the pipeline of works for local builders today. Simplifying and extending VAT relief for housing improvement work would have done this. The 3.9% increase to the apprentice rate of the minimum wage may not seem unduly high but come April 2027, it will have risen by 72.8% in 5 years. The series of year on year increases means labour costs are exerting more and more pressure across the building industry.
"Builders want to recruit and train apprentices but they are not banks. Now the bosses of building companies from Lerwick to Langholm and from Stornoway to Selkirk will look to the Scottish Government to see what if any targeted funding can be announced at the Scottish Budget in December to ease some of the pressure.”
Mark Macdonald, Director of O’Mac Construction in Stornoway on the Isle of Lewis, said:
“There’s been a lot of talk about the budget providing breathing space. In reality there is so little in it to help businesses find some breathing space. Once again, we are left bearing the brunt. It’s building companies like mine that are needed to build new homes and upgrade existing homes, so I am hoping for improved support from Holyrood come December.”
