"A budget for votes, not business," says BWF... but FMB approves apprenticeship initiative
24th March 2015

The British Woodworking Federation has dismissed last week’s Budget as: “More about hunting for votes from Middle England and pensioners than backing business and growth.” 

Iain McIlwee, chief executive of the BWF, said: “If the Chancellor wanted to secure the votes from the 100,000 people working in the £3.8 billion wood products manufacturing sector in the UK, he needed to show better recognition that construction and manufacturing will be the key drivers for future growth.

He complimented the Chancellor on some initiatives such as the Help to Buy ISA and the 20 new housing zones, but continued: “Where was the support for the smaller builder? Where was the incentive for councils to invest more intensely in building in their regions? 

 “Our members will welcome the reduction in corporation tax, but tax remains complex and comes in many guises – for example, pushing up the minimum wage for apprentices above the recommendation of the Low Pay Commission doesn’t walk hand-in-hand with driving growth in apprentice numbers. Today the Chancellor spoke of a doubling in the number of apprenticeships, but we need to be careful that we are comparing like with like. The average apprenticeship outside our sector is just 10 months; this is surely not equivalent to the three year intense woodworking and joinery apprenticeships that deliver a real trade and huge opportunity to young people.”

However, Brian Berry, Chief Executive of the Federation of Master Builders said the Budget showed that the Chancellor had listened to the construction industry’s needs over apprenticeships. In a statement from the Federation, he said: “The Government has finally set out a clear direction in terms of its apprenticeship funding reforms.

“The new digital apprenticeship voucher model is a vast improvement on what was formerly proposed. We do still have some concerns about the potential for it to add an more administrative burden for small firms, so we will be working closely with the next Government to minimise any added bureaucracy.

Berry continued: “The Construction Industry Training Board (CITB) predicts that an additional 200,000 jobs will be created in the construction industry over the next five years and up to 400,000 people could retire over the same period. It’s therefore crucial that government does nothing to undermine the desire or ability of small construction firms to train apprentices. Let’s not forget, two-thirds of all construction apprentices are trained by the very smallest firms so we need to carefully develop a framework which works for them, not against them.”

On the promised review of Business Rates, Iain McIlwee said: “This is positive and we have been calling for this, but it must be about more than reducing rates for retail.”

 While empty shops are a major issue and not the best advert for a healthy community, the true engines of growth will be manufacturing and construction. It is these businesses which, if supported, will grow, employ and deliver cash to the high street.

www.bwf.org.uk
www.fmb.org.uk