Britain’s tradespeople are central to the Government’s housing ambitions, yet many of the small firms expected to deliver them remain under pressure. Ahead of the Autumn Budget on 28 October, Fix Radio is setting out the changes that could make it easier to run a trade business. Recent Federation of Master Builders and Chartered Institute of Building research found 72% of construction SMEs were affected by skills shortages, while 51% reported lower-than-expected profits or losses.
Speaking to Fix Radio, Shadow Chancellor Andrew Griffith described the tax system as “really complicated” and said he wanted more people to be able to “set up their business and be entrepreneurs and control their own future.” Asked about Making Tax Digital, he called for an approach that could achieve the same outcome in a “less painful, less costly way”.
A Trades Budget could include:
A review of the VAT threshold: The £90,000 threshold can discourage sole traders from growing when higher turnover does not necessarily mean higher take-home income. A review could look at whether the current level still reflects the realities of small trade businesses.
Better recognition of self-employed costs: Tax policy should better reflect the financial reality of working for yourself. For many tradespeople, the cost of simply staying in business has risen significantly.
More support with vehicle costs: For many tradespeople, a van is an essential part of the job rather than a discretionary expense. The cost of keeping it on the road can have a direct impact on whether a job remains profitable.
Greater breathing room for small trade premises: Rising property costs can make expansion harder for smaller firms. A more supportive approach could help businesses take the next step without adding further pressure.
More practical support for apprentices: Small businesses need a more affordable route into training the next generation. Without that support, the burden of closing the skills gap falls heavily on firms already operating on tight margins.
Stronger relief on essential equipment: Firms should be better supported when reinvesting in the kit they rely on to work. Replacing essential equipment should not become another barrier to staying productive.
Fix Radio says the Autumn Budget is an opportunity to bring the day-to-day reality of running a trade business closer to the centre of the economic debate.
