{"id":167417,"date":"2026-11-06T14:16:40","date_gmt":"2026-11-06T14:16:40","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=167417"},"modified":"2026-11-06T14:16:40","modified_gmt":"2026-11-06T14:16:40","slug":"last-weeks-budget-i-dont-think-were-there-yet","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/last-weeks-budget-i-dont-think-were-there-yet\/167417\/","title":{"rendered":"Last week\u2019s Budget\u2026 I don\u2019t think we\u2019re there yet"},"content":{"rendered":"

Tom O\u2019Brien, director, O\u2019Brien Contractors, reflects on the construction commitments made in last week\u2019s Autumn Budget and why these need to go further<\/h2>\n

Before the Autumn Budget, we said our country needs stability through long-term planning and investor confidence. After last week\u2019s announcement<\/a>, I think there is still some work to be done.<\/p>\n

Commending the positives<\/h3>\n

Don\u2019t be mistaken; many announcements will benefit the construction sector. First, the 5p cut to fuel duty has been extended for another six months; second, the standard tax-free mileage rate has been permanently increased from 45p to 55p for the first 10,000 miles. Fuel is and will remain one of the biggest expenses in construction, so it was reassuring to see fuel costs front and centre in the announcement.<\/p>\n

One of our greatest calls for the Budget was to build a country where people are incentivised to grow their businesses, and where investors want to spend their money. The new Founders Relief scheme is a major green flag for young entrepreneurs to invest their time and ideas into this country\u2019s economy and should be a massive incentive for those looking to start their own firms. The Chancellor has also announced the tripling of the trading allowance from \u00a31,000 to \u00a33,000 to support those starting a business. Financial relief is the biggest driver of motivation, and as a sector that needs a pipeline of growth and new talent, it will be interesting to see the long-term effect of these incentives on construction growth.<\/p>\n

That being said, the Budget brought a lot of benefits for some businesses, and less for others. Hospitality, retail and leisure are understandably important to support and remain pivotal to the success of this country, so it is great to see the freeze of business rates for these sectors. But these are not the only sectors that make our country successful.<\/p>\n

Many of our contractors are still small family run businesses that need this support too. Whilst the threshold they operate under is often much greater than the \u00a312,000 – \u00a318,000 figures outlined in the Budget, there was a noticeable and disappointing lack of support for SME contractors and sub-contractors.<\/p>\n

Red tape and regulations<\/h3>\n

Healey also announced no further changes to building regulations, except where safety constraints require them. In the same breath, it was also announced that Biodiversity Net Gain requirements will be scrapped for smaller housing developments on brownfield land, helping reduce the time and financial constraints around planning and building new homes. Although this is a step back for the environment, it is a step in the right direction for contractors. For long enough we have been held at the mercy of red tape, so it is rewarding to see this finally recognised, and it will undoubtedly help unlock a lot of regeneration potential.<\/p>\n

However, much more is at play than red tape alone. This Budget announced a further \u00a31.5 billion in funding for new social and affordable housing. Add this to the targeted 1.5 million new homes, and there is a lot of talk about housebuilders, but not much about how we will make these construction targets viable. These targets also depend on demand for new homes. The \u201cYour First Home\u201d scheme will certainly help incentivise buyers and hopefully push developments forward, but before these targets are set, there should be more attention paid to the contractors these schemes depend on.<\/p>\n

Is it still a skills issue?<\/h3>\n

One thing our current government has done well is support investment in young careers. The Chancellor has announced that all large government infrastructure and construction projects must employ at least 3% of their workforce through local apprenticeships, helping to drive social value through local employment and young careers. This legislation is a promising step forward, but we need more action<\/a>. Almost one million young people are not in education, employment or training (NEETs), so tapping this untapped skills pool must be central to our sector’s long-term growth.<\/p>\n

However, contractors must be ready to accommodate young employees. The 3.9% increase in both the National Living Wage and the National Minimum Wage will almost certainly put strain on construction employers, especially for junior employees. Many are already stretched for time and resources, relying on an experienced workforce in place of investing in and training junior potential. It would have been significant to see some awareness and support for those employing young people, as the time and funds for young employees do not \u201cgrow on trees\u201d.<\/p>\n

Asking the awkward question<\/h3>\n

In addition, one key concern remains. Like many Budgets before it, last week\u2019s announcement failed to address what many see to be one of the biggest issues facing working taxpayers: the growing cost of the welfare system and how it is funded. Whilst this is not directly a construction issue, our sector is very profitable to the tax system, and although we are not averse to paying our fair share of financial support, this is not a cost that people can afford to absorb much longer.<\/p>\n

Tackling the NEETs problem is one approach, but as mentioned, that comes with its own considerations. Labour needs a strong, clear plan that is both empathetic and decisive if it is to build confidence within both its own party and the public.<\/p>\n

All in all, there was a lot of \u201cwhat\u201d, and not much \u201chow\u201d. If all goes to plan, last week\u2019s reforms will bring about great change for employment, housebuilding, and future growth, but I can\u2019t help feeling there is still work to be done.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Tom O\u2019Brien, director, O\u2019Brien Contractors, reflects on the construction commitments made in last week\u2019s Autumn Budget and why these need to go 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