Horgan Homes and FBC Manby Bowdler say Reeves’s plan fails to restore business confidence
The Budget will fail to restore business confidence, two Midlands firms said today.
Housebuilder Horgan Homes and law firm FBC Manby Bowdler both said Rachel Reeves’s Autumn Statement would serve as a drag on the housebudiling and house-buying markets.
Sophie Horgan, director Horgan Homes, branded it a “sticking plaster” Budget which did not address the key issues holding back the UK economy.
Neil Lloyd, chief executive FBC Manby Bowdler, said Reeves had damaged her credibility with a series of U-turns before yesterday’s speech in the House of Commons.
‘I wanted action to prioritise SME constructors’
Sophie said: “Yesterday’s Budget is a sticking plaster of a statement which will do nothing to restore faith in this Chancellor.
“I wanted to see clear action to prioritise the small housing sites and SME constructors who are the backbone of housebuilding in this country. Things like cutting red tape and affordable housing obligations around small sites of 20 homes or fewer would have made a huge difference.
“I heard little which will help first-time buyers achieve their housing dreams and even less about creating the sort of Government-backed finance deals which would enable smaller builders to press ahead with projects with real confidence.”
‘Chancellor has undermined her standing with business leaders’
Neil, whose law firm has offices in Birmingham, Wolverhampton, Knowle, Shropshire and Worcestershire, said: “Business confidence is very fragile at the moment – and the Chancellor’s U-turn over income tax spooked the markets even more and has certainly undermined her standing with business leaders.
“We know that businesses have been delaying investment and hiring decisions while they wait to see what the Chancellor had to say. I’m not sure that yesterday’s speech will inspire the confidence we need to get the economy growing again.”
Neil, who is also chairman of the Training and Manufacturing Group, added: “The new ‘mansion tax’ (levy on any property valued at £2m or more) will stall the top end of the housing market, which in turn will filter down through the whole chain and stifle property sales. A reform of the Stamp Duty Land Tax would have been much more warmly received.
‘Farmers feel let down’
“Increasing taxation on both business and individuals – as yesterday’s Budget will do – takes more money out of circulation and prevents the sort of investment we need to get the economy moving again.
“Our farming clients will feel let down – but not surprised – that their powerful campaign against agricultural inheritance tax rules has not resulted in them being reversed, although allowing the transfer of the 100% relief allowance between spouses is a step forward.”
