The Chancellor’s Budget promised to “Get Britain Building,” but linking this ambition solely to planning reform is far from a success story. Public sector investment in infrastructure offers some hope, but most announcements have simply repeated what we already know.  At a time when the construction sector could be a powerhouse for growth, this Budget feels disconnected from reality and short on meaningful stimulus.

The measures announced do little to inspire confidence or encourage growth. A worrying fact at the core is that the OBR has confirmed productivity is falling – and this Budget does nothing to address it.

Maintaining the Annual Investment Allowance makes sense, but it doesn’t add stimulus.  Increases to the Living Wage for those aged 21+ and the Minimum Wage for 18-20-year-olds will have an inflationary effect across pay scales, discouraging investment in people. The headline pledge of free apprenticeships for under-25s sounds positive, but in reality, most businesses could already achieve this via voucher transfers. For those that would benefit, increases in apprentice minimum wage will quickly cannibalise any gain. Apprenticeships account for only 10% of new entrants in our sector due to bureaucracy and risk. Hiking wages and minor tinkering in training cost without tackling these barriers will only serve to undermine the skills pipeline construction desperately needs.

Focusing additional relief on start-ups is all well and good, but the same entrepreneurial spirit is being drained from established firms with a proven track record. Beyond employment costs, changes to dividend taxation and pensions will hit business owners. Cutting capital gains tax relief for employee ownership from 100% to 50% undermines succession planning and stability – this a huge blow for many SME construction businesses who see this as the most (often only) responsible way to plan an exit and ensure continuity.

The decision to freeze fuel duty is a minor positive, but it sits awkwardly alongside new taxes on electric vehicles – after years of incentivizing their adoption.  Overall it is worrying too how little reference there was for supporting Net Zero and the opportunity this offers.

This Budget lacks a coherent growth strategy, does not stoke the entrepreneurial fire and ultimately adds to the cost of doing business, which has, with the wider inflationary backdrop been spiralling in recent years. The pantomime atmosphere under which it was leaked and delivered raises further concern that politics are being put before people and that our politicians remain remote from reality.  It underpins why we need a proper Construction Minister, not a junior Minister with Construction lost in an eye-watering portfolio.

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