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The Federation of Master Builders (FMB) says the Chancellor missed yet another opportunity to help legitimate small and medium sized building firms, and crack down on the cowboy element in today's Budget.
The FMB welcomed the elements of today's Budget designed to reduce the financial and administrative burden on small businesses through reductions in corporation and capital gains tax and reforms on VAT that will simplify arrangements for businesses with a turnover under £150K. However, the FMB is concerned that these positive changes may be negated by the 1% increase in Employer's National Insurance contributions.
The FMB is particularly disappointed that the Chancellor has not reduced VAT rates on domestic RMI work, which it believes would play a major role in driving rogue traders out of the industry.
Commented FMB Director General, Ian Davis:
"We will obviously need to study the detail of today's Budget, but our initial reaction is one of disappointment. In a labour intensive industry such as ours, the rise in NI contributions may wipe out any gains made by small businesses on tax and VAT reforms.
"By failing to address the issue of VAT on domestic RMI work, the Chancellor has once again missed an opportunity to crack down on the cowboys that cause so many problems for homeowners. Unfortunately, the additional NI contributions introduced in the Budget, will serve to increase the gulf between legitimate and rogue traders."
First posted: 18 April 2002. Last modified: 18 April 2002.
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