The Labour Government has delivered its first UK budget in 15 years, presenting a strong growth narrative aimed at rebuilding Britain and filling the £22 billion black hole they claim to have inherited.
Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “The 2024 Budget was always going to be challenging due to the ongoing £22 billion black hole narrative. Nevertheless, it is positive to see the suspected fuel duty rise did not happen, especially as the construction industry is already paying considerably higher fuel costs after the last government cut their access to red diesel.
We also welcome the £5 billion funding boost for affordable housing, commitment allowing councils to retain 100% of Right to Buy receipts and, the £3.4 billion for retrofitting.
However, the Government’s target to deliver 1.5 million homes is now at a considerable risk due to the increase in Employer National Insurance contributions. This announcement will hinder the industry’s ability to take on and train new staff and support the next generation of skilled workers. While some may point to planning reforms as the solution, those reforms have not yet been implemented, and it will take years before new projects avail of them.”
Included among the other announcements is the Chancellor’s move to not extend the freeze on income tax and National Insurance thresholds beyond 2028, an increase on Capital Gains Tax, a rise in National Minimum Wage, and commitments to increase funding for transport and energy infrastructure.