The timber trade has given a largely critical reception to the Budget, with many claiming it was designed to boost electoral rather than business prospects. Extra cash for school repairs was viewed as one of the Budget’s few business-friendly gestures.
The Timber Trade Federation gave the chancellor’s package of measures a low score for failing to tackle red tape.
‘The budget’s failure to reduce the £10bn red tape burden imposed on business since 1997 is obviously a disappointment,’ said the TTF’s Mark O’Brien.
The Construction Products Association (CPA) claimed it had been a budget of ‘missed opportunities’. CPA chairman Michael Ankers said he was saddened that the chancellor had failed to cut VAT on repair and maintenance to 5% and missed introducing a powerful incentive to urban regeneration.
Director of hardwood importer Timbmet Dan Kemp could find very few business concessions in the chancellor’s announcement. ‘It is mostly a populist budget. There has been help for transport in terms of slightly reduced fuel duty and vehicle tax, but the amounts are tiny really.’
Mike Cater, MCI Timply Ltd chief executive, said: ‘We haven’t really been given anything at all. I’ll believe this help that is supposed to be given to the small business when I see it.
‘The timber trade is as flat as a pancake at the moment. And this Budget will do nothing to change that.’
Nick Howarth, managing director of Howarth Timber Group Ltd, said: ‘The negative things were the extension of maternity leave and the introduction of paternity leave of two weeks. They are introducing regulations that make it more difficult for businesses.’
The increase in direct capital grants for schools to fund repairs and new buildings was welcomed as good for the industry. The typical secondary school’s capital grant will go up from £19,000 to £28,000. Potential work could include replacement doors and windows, new bookshelves and building new reception areas.
Director of the British Woodworking Federation Kevin Cubbage said: ‘I do see an upside in continuing investment into education and hospitals, as those are very good areas for our members.
House Builders Federation spokesperson Pierre Williams welcomed the abolition of stamp duty in deprived areas and the VAT cut on residential conversions from 17.5% to 5%.
