Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
The Building Merchants Federation (BMF) CEO, John Newcomb, has voiced concerns over the Budget’s impact on small and medium-sized merchants.
Newcomb’s response follows government announcements of new revenue-raising measures, which, while anticipated, have sparked worries over increased operational costs.
“We fully expected this to be a difficult budget for our members, with many of the revenue-raising measures flagged in advance,” Newcomb commented.
He noted that over 70% of the BMF’s members operate with an annual turnover below £12.5 million and are bracing for the impact. While the budget provided a small win with no increase in fuel duty, Newcomb warns that higher minimum wage and national insurance contributions will significantly affect members’ profits.
“This is extremely disappointing at a time when we are seeking to increase recruitment and skills in the building materials sector,” Newcomb stated, highlighting the challenge of meeting the demands required to deliver 1.5 million new homes – a government target with little practical detail on execution.
Newcomb added: “The sooner we start seeing details of how the government plans to achieve their housing target, the better.”
