What The Budget 2016 Means For Specialist Contractors and The Construction Industry
Another year, another budget. It’s time to see what impact this year’s revelations will have on the construction industry and on the Specialist Contractors that make up the foundation of it.
Rate Relief = Business Boost
The chancellor made a number of cut announcements that actually benefit SMEs for a change!
- Business rate relief has more than doubled, from £6,000 to £15,000 max for small businesses.
- The higher business rate relief threshold has risen from £18,000 to £51,000.
His announcement concluded that from April 2017, 600,000 SMBs will pay no business rates at all, with a further 250,000 seeing significant reductions in their business rates.
And hopefully a large proportion of those businesses will be in the construction sector!
Corporation Tax Cuts Pressure On Subbies
Another exciting announcement for construction SMBs:
- By April 2020, corporation tax will have fallen by 3%, to a rate of 17%.
This cut will offer more much needed relief for small businesses across the UK, particularly Specialist Contractors.
Government Green Light For Construction Projects
The approval of several large scale construction projects should have a positive impact throughout the industry, as much needed money is invested back into construction:
- £30m set aside to fund Crossrail 2.
- £60m funding approved for HS3.
- £161m designated for Highways England to upgrade the M62.
- £700m allocated for flood defence schemes across UK.
The real test will be how this new investment and signs of positivity impact the industry’s deep-set culture.
Will the main contractors play fair and pay fair? Or will the continued greed continue to grasps the higher tiers, leaving those further down the construction supply chain to struggle on?