Scotland was the only UK nation to see growth among builders accelerate in the last three months, with an increase in both workloads and enquiries, according to the Federation of Master Builders (FMB) Scotland.
But the trade body has warned Boris Johnson to rethink his promised policy of cutting stamp duty to support the UK industry as it could have ‘unintended consequences’ for Scottish builders by widening the tax gap between Scotland and the rest of the UK.
The trade association’s State of Trade Survey for the second quarter of 2019, which assesses the SME construction sector, found that in Scotland in terms of the overall score for workloads, expected workloads and enquiries, had an increase of 23 percentage points compared to the previous quarter.
The FMB said this is a success story for Scotland’s local builders and can be attributed to the resilience of homeowners who are continuing to commission projects.
It added that the number of people undertaking trade apprenticeships is on the up as more and more young Scots see construction as a rewarding career.
The 2nd quarter survey found that UK-wide there was a decrease in employment levels among small construction firms for the first time in more than five years. More than one fifth of employers reported a reduced workforce.
Gordon Nelson, director of FMB Scotland, said: “The construction sector in Scotland grew during the second quarter of this year. What’s more, Scotland was the only nation where the order books for builders grew at a faster rate than they did during the previous three months.
“On the other hand, when it comes to the availability of skilled labour, there’s no room for complacency.
He added: “We now know the identity of the new Prime Minister and we’re urging Boris to show his credentials as ‘Boris the builder’ and stimulate the whole of the UK economy through increased activity in construction.”
Nelson said that he would urge Boris Johnson to revisit his policy promise of cutting stamp duty to ensure there are no unintended consequences for Scotland’s builders.
Nelson explained: “By cutting stamp duty he will be widening the tax gap between Scotland and the rest of the UK, making our nation a disproportionately difficult and costly place to live and invest.
“This is of significant concern to local house builders, especially as other costs to business continue to increase, in the form of material prices and wages. Boris risks bringing Scottish construction crashing back down to earth if he doesn’t ensure this policy is reviewed.”
