Gordon Brown’s budget commitment to maintain the government’s public spending plans despite economic uncertainty has won plaudits from sections of the timber industry.
Richard Lambert, director of the British Woodworking Federation, described the budget as “not bad” and appreciated measures to help small and medium-sized enterprises (SMEs).
He said: “The commitment to maintain the government’s capital spending plans is good for the construction industry. If they’re going to keep spending on schools, hospitals and transport, that’s good for the woodworking industry.”
He liked plans to widen the definition of SMEs, which would make more companies eligible for tax breaks, including a 40% first year capital allowance on plant and machinery expenditure. He welcomed a training initiative to help SMEs with development and promotional work, and said future consultation to encourage energy efficiency was good news.
However, Mark O’Brien, head of public affairs at the Timber Trade Federation, said: “What TTF members want are lower business taxes, a substantial reduction in red tape and a more competitive fuel duty regime. This, plus the £8m increase in employers’ National Insurance that has just kicked in from the last budget, make this a disappointing budget for business.”
The Construction Products Association also approved of Mr Brown’s commitment to maintain public spending on the built environment plus targeted measures to help SMEs and encourage research and development.
However, it was disappointed he had not given more general incentives for manufacturers to invest, such as introducing improved capital allowances. It had also wanted to see VAT reduced on repair, maintenance and improvement work and on energy efficient products.
