A ‘no deal’ Brexit
could result in soaring material prices and lower workloads and enquiries,
according to the latest research from the Federation of Master Builders (FMB).
When asked about the
impact of a ‘no deal’ Brexit, key results from the research include:
- Over half (53%) say it
would result in higher material prices;
- Just under a third
(29%) say it will lead to lower workloads and enquiries;
- Just over a quarter
(26%) say it would result in less access to skilled workers.
When asked how best
the new PM could prevent an economic downturn later this year, the top five
interventions cited by construction SMEs were the following:
- Reduce VAT on repair,
maintenance and improvement (87%);
- Make more money
available through Government funding schemes aimed at SME house builders, such
as the Home Building Fund (36%);
- Reform the
Apprenticeship Levy so more SMEs can train apprentices (36%);
- Invest funds in local
authority planning departments to speed up the planning process (30%);
- Embark upon a national
programme of social house building (25%).
Brian Berry, Chief Executive of the FMB, said: “As the Conservative leadership contest
rumbles on, construction SMEs are worried about the potential impact of a ‘no
deal’ Brexit, which would have immediate and potentially disastrous
consequences for the construction industry. Material prices are the biggest
cause for concern – widely-used building materials such as timber are largely
imported and any disruption to that would lead to soaring prices and delays to
construction projects.
"More broadly, a
significant proportion of construction SMEs think that a ‘no deal’ Brexit would
result in lower workloads and enquiries as confidence in the economy might
wobble as people abandon plans for new projects until the UK is on a steadier
footing.
"However, the
next PM has it in his gift to guard against any potential economic downturn by
stimulating activity in construction and house building as soon as he gets the
keys to No.10.
"Construction
SMEs believe that the best way to do this would be to slash VAT on housing,
renovation and repair work from 20 per cent to 5 per cent, which would help
tempt homeowners to finally commission the home improvement projects they’ve
been putting off due to Brexit-related uncertainty. This would give a
much-needed boost to the construction sector and the wider economy.
"The next PM
should also make more money available to SME house builders through government
funding schemes and stimulate apprenticeship training through fundamental
reforms to the Apprenticeship Levy. Once elected, the new PM has a
responsibility to steady the economy. There’s no better way to do that than
investing in construction and house building, which would boost economy.”
