Minimum Wage Must Not Cause Maximum Harm
The FMB says the government must ensure that a rise in National Minimum Wages do not make it harder for SMEs to recruit, train and retain workers in the home building and improvements sector.
The Federation of Master Builders has reacted to the increase announced by Chancellor of the Exchequer, John Healey, in his Autumn Budget.
FMB Scotland was the first to speak up, saying ‘that fair pay must be matched by practical measures that help smaller employers absorb rising labour costs’.
The national FMB also welcomed support for first-time buyers and the continuation of the fuel duty freeze, while warning that housing measures must work for smaller companies as well as the largest developers.
Wider VAT relief a missed opportunity
Gordon Nelson, FMB Scotland Director told Installation Eye: “The Chancellor missed the opportunity to boost the pipeline of works for local builders and installers. 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 and home improvement companies want to recruit and train apprentices, yet they are not banks. Now the bosses of those companies from Lerwick in Scotland to those in Plymouth in England will look to see what if any targeted funding can be announced. We north of the border will be keeping a close eye on the Scottish Budget in December to ease some of the pressure.”
Short of breath
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.”
Picture: FMB Scotland's Gordon Nelson.
The FMB has called for support for small builders as minimum wage rises push up labour costs, urging wider VAT relief and funding to recruit and train apprentices.
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