The 1% increase in National Insurance (NI) contributions announced by chancellor Gordon Brown in his Budget has been widely criticised by the timber industry.
Voices of concern raised by the Timber Trade Federation (TTF) and British Woodworking Federation (BWF) have been echoed by the Construction Products Association (CPA) and the House Builders Federation (HBF).
Meanwhile, Mark Silverman, managing director of sheet materials company S Silverman & Son (Importers) Ltd, said: ‘I am very concerned about the NI increase being a tax on business and am disappointed that the government has not chosen to raise taxes for the NHS through income tax, which I consider is a more appropriate way of raising funds.’
He said the government needs to widen its tax benefits from just small businesses to include medium sized companies.
Mr Silverman said the increase will not affect the company’s plans for the future but that it is a tax which could not be ignored.
Nicholas Howarth, joint chairman and chief executive of Howarth Timber, said: ‘It’s obviously an additional 1% on labour costs.’
He estimates the increase would cost the company a six figure sum. However, he welcomed the freeze on fuel duty and said at least the taxes were visible and not the ‘stealth’ increases of past budgets.
Hamish MacLeod, general manager of Scottish sawmiller Howie Forest Products, said: ‘The increase in NI contributions for employers is not going to encourage us to employ any more people than we absolutely need.’
He said as a middle sized company, Howie Forest Products missed out on the tax benefits announced for small businesses.
