The British Woodworking Federation (BWF) has responded to today's Budget Announcement from the Chancellor, noting that although tax breaks were likely to benefit the woodworking sector, there was little in the budget to support the next generation of apprenticeships or sustainable product manufacturers.
Iain McIlwee, Chief Executive of the BWF, said:
“Joinery & Woodworking is the third largest sector of employment in the construction industry, so tax breaks are welcome news for our sector. Driving down corporation tax is a simple way to support UK manufacturers striving to remain competitive in a global market. It will help take the sting out of wage inflation and other inflationary pressures announced, such as IPT increases.
“The jury is out on Business Rates though. Nothing has been done to limit the impact on investment – the changes presented are more retail-focussed than helping those with manufacturing premises. Linking future movement to RPI is good, but waiting until 2020 is just jam tomorrow.
“With pressing skills shortages we need to stop dithering on apprentices. The lack of any further clarifications on how the Levy will work is a disappointment. More maths in schools can only be a good thing, but how about some structured careers support? The aspirational 3 million apprentice starts need to be targeted and nurtured effectively to add up to 3 million productive workers.
“We are also sceptical about the Government's commitment to deliver 400,000 affordable housing starts. It sounds positive, but in reality it is less of a commitment than a vague hope. We need a steady flow of affordable housing onto the market and realistically this needs to be driven by direct government investment. Had this programme commenced at the start of the recession, asset ownership could be flattering the national balance sheet right now; instead incentivising housing demand continues to be a burden.
“A final concern is not just the absence but the derision with which the Chancellor is treating environmental issues. This fundamentally undermines his assertion this is a Budget that puts the next generation first. This may yet be the legacy for which he is really remembered.”
Following the Chancellor’s release of the Budget, Dr Diana Montgomery, Chief Executive of the Construction Products Association, also commented:
“The Chancellor has rightfully recognised the value of infrastructure investment, both for the present and future generations’ benefit. The government’s support for the National Infrastructure Commission is encouraging and the list of projects given the green light such as HS3, Crossrail 2 and numerous other schemes across the country will please everyone in the construction supply chain. Still, we are very mindful that announcements are one thing but spades in the ground are another thing altogether. We therefore welcome the announcement of a National Infrastructure Delivery Plan which we hope will provide clear, short-term delivery details for major projects and give manufacturers and builders the confidence they need to invest in skills and manufacturing capacity.
“Aside from that promised pipeline of work, there was little else of note for either manufacturers or the construction industry. The £750 million in spending on flood defences belatedly begins to make up for the cuts imposed during the previous government and is welcome news to those who have always been keen to offer sustainable, innovative solutions. In addition, the freeze on fuel duty will certainly be appreciated by our members distributing construction products up and down the UK. Finally, the government’s ongoing commitment to the ‘Northern Powerhouse’ will benefit both the regeneration of the region and the many manufacturers who are also major employers in the area themselves.
“Given the constraints the government is facing from global headwinds and the cocktail of risks,” Dr Montgomery concluded, “we were always realistic in our expectations about today’s Budget. Our main focus continues to be on ensuring that government works with industry to create clear, consistent policies with long-term roadmaps for delivery. Ultimately, this will be key to encouraging investment, innovation and growth.”
As a benefit of BWF's membership of the Construction Products Association (CPA), logged-in members are able to view the CPA Weekly Notes Budget 2016 Special.
View the BWF Manifesto here and learn more about the skills requirements, support for UK manufacturing and the sustainability of timber.
