‘Balance sheet bingo’ budget unlikely to bolster growth

The British Woodworking Federation is sceptical that the measures announced today in the Chancellor’s Budget Statement will provide much respite for those involved in the heart of the joinery industry.

Despite showing some support for UK manufacturing, the tax cuts and housing measures announced are unlikely to significantly improve the climate for BWF members unless the government can make the most of the clear opportunities to foster growth through construction.

Commenting on today’s announcement, Iain McIlwee, Chief Executive of the British Woodworking Federation, said:

“What we are looking at is more balance sheet bingo than tangible, practical, growth focussed policy.  Whilst more flexible mortgage loans will provide some respite, it seems unlikely to create the step change we need to see.  Tax cuts are welcome, but without growth are not enough.

"I remain concerned for our members, who operate at the very heart of manufacturing.   Virtually the entire business world stood up and asked for more houses – the measures announced are not enough fast enough.  We joined with leading lobby groups focussed on the destructive nature of high VAT on refurbishment and what comes through is 1p off a pint. Where is the much needed support for the Green Deal?  We continue to be soft on the banks that regularly shut the door on manufacturers starved of cash, under-writing their risk, and continue to let them charge eye watering interest rates on any money they are actually lending rather than bleeding out of the system as bonuses.

"Let us not mistake austerity for strength. To drive growth we don’t need an iron chancellor, we need an inspiring chancellor – one who is committed to encouraging growth, one who can listen, adapt and evolve.  I didn’t see that today.”