The announcement by Chancellor Jeremy Hunt of the reversal of most of the mini-budget tax measures introduced by his predecessor has been broadly welcomed by the wider industry.
The Chancellor Hunt is to fast-track many billions of pounds worth of tax and spending measures from his debt plan, announcing them a fortnight earlier than expected.
RIBA President, Simon Allford said the Chancellor’s commitment to incentivise energy efficiency improvements to our buildings is a welcome step-change. “Indeed, it is essential for the nation to both cut energy bills and reduce carbon emissions,” he continued.
“A major challenge, the Government must rise to it through a National Retrofit Strategy – a long term policy and investment programme for upgrading the energy efficiency of England’s housing stock.
“Having said this, we recognise that the scaling back of the Energy Price Guarantee from two years to six months may cause worry for households facing fuel poverty – more must be done to reassure them.
“All families deserve to live in safe, well-designed spaces that support long-term wellbeing. We will continue to work with the Government to deliver this.”
The new Chancellor’s overhaul of the mini-Budget is a positive move to help restore ‘confidence and stability’ in the economy, says the Federation of Master Builders (FMB) in response to Jeremy Hunt’s emergency statement.
Brian Berry, Chief Executive of the FMB, said: “The building industry won’t be alone in feeling confused and concerned by recent political and economic events. Small, local building firms need the stability and confidence that the new Chancellor has promised today.
“The commitment to retain the Stamp Duty cuts and the promise to incentivise energy efficiency as part of the Government’s support with record energy prices is encouraging. This latter commitment would be best delivered by the Government backing a national retrofit strategy to make our existing homes more energy efficient which would also have the added benefit of creating jobs and growth in every region.”
Shevaun Haviland, Director General of the British Chambers of Commerce, was less enthusiastic.
“The Chancellor’s buzzword was stability,” she argued. “But what we’ve seen from him is a plan for today and nothing for tomorrow.
“Following the economic turmoil of the last few weeks he had to press the reset button.
“But businesses will be dismayed by the decision that looks set to strip back the energy support for firms from next April. This will be a hammer blow for many who were already worried about how they will survive.
“The government must commit to a full consultation with firms ahead of that cliff-edge to provide some certainty on where any targeted support will go. Energy costs keep business owners awake at night, alongside rising inflation and interest rates.
“Keeping support for the NICs reversal in place will be some relief for hard-pressed firms, but on its own will not be enough.
“The Chancellor has a delicate balancing act to carry out. He must restore order to the markets if he is to prevent further damage to business and consumer confidence. But if he is serious about stability and growth, he must speak to our Chamber Network to truly understand the pressures firms face.
“People run businesses and businesses rely on people. The Government is failing to fully understand that the cost of living and cost of doing business crises are two sides of the same coin. We still need a clear vision on how it will support firms and the communities that rely on them to thrive.
“It must be clear in how it plans to do this, to prove it is serious about helping businesses through the difficult months ahead. Time is of the essence.”
