The conspicuous absence of tax increases affecting business in Gordon Brown’s budget has been welcomed by the UK timber trade.
Andrew Howarth, chairman and managing director of New Holland-based Howarth (Timber Importers) Ltd, said: “Essentially it’s a pretty neutral budget and the fact that there are no further tax increases is good. Cutting the public sector is a move in the right direction.
“There has been a lot of concern that tax has been borne disproportionately by business in the past and I think the chancellor has taken that on board.”
Mr Howarth also welcomed the Treasury’s Barker Review of Housing Supply, which he described as more significant for the timber industry than the budget, with more new houses potentially meaning more business.
The report says Britain needs to build up to 140,000 extra new homes a year if housing supply is to match demand.
Mark O’Brien, the Timber Trade Federation‘s (TTF) head of public affairs, said: “The TTF welcomes that there was no extra taxation and red tape which has been smothering business but are extremely concerned that the levels of borrowing, the highest for a decade at £37.5bn this year, are unsustainable in the long run.”
The Construction Products Association (CPA) also welcomed tax freezes but said the chancellor had “missed an opportunity” by only making a modest extension to the range of energy efficient products entitled to a lower VAT rate.
CPA chief executive Michael Ankers described the Barker report’s recommendation to build an additional 70,000-120,000 private houses and double social housing starts every year as a “bold” response to the housing shortage.
