Terry Paterson, commercial director for EPD, has voiced warnings that rises in taxes may just prevent growth
At a time where confidence is slowly beginning to return, Paterson warns that construction tax rises could ruin this confidence and instead cut off growth.
Even concerns over the issue, which would be announced in the budget on 26 November, which saw the chancellor give a scene-setter speech earlier this month.
Terry Paterson, commercial director for EPD:
“Our sector is already dealing with high input prices, rising energy and transport costs, and ongoing supply-chain disruption, If tax rises go ahead, those pressures will compound: margins will shrink, material orders may be delayed or cancelled, and that will feed upstream into manufacturing and suppliers.
“Our customers are telling us that business is stagnant, and in some cases down by 20%. If taxes go up, this already weak situation could collapse further. The recent noise of ‘housing bouncing back’ is overshadowed by ever frequent stalls on orders in this space.
“In this environment of uncertainty, we believe two things are especially important:
1. Clear signalling of tax policy – clear notification of which taxes will rise and by how much, so suppliers and contractors can budget and plan.
2. Supply-chain resilience support – including support for UK manufacturing of construction products, funding for skills and capacity, and measures to ease logistics and procurement pressures.
“The Autumn Budget is a pivotal moment for our industry. We understand the need for financial discipline, but if the government introduces policies that make houses more expensive or discourage buyers, it could derail the fragile recovery in homebuilding. We’re committed to supporting builders through uncertainty by ensuring reliable access to parts and components, helping maintain project timelines and cost control. What we need now is clarity and targeted support from the government to keep Britain building.”
Confidence is key for the industry
Writing for PBC Today in October, Nick Gray from Currie & Brown described three C’s that are integral to construction, being connection, collaboration, and confidence.
Nick wrote: “Built assets are essential to how economies function and communities thrive with confidence. From data centres and delivery hubs, to factories, power networks, schools, and hospitals – these are the places that keep societies moving. They help us care for people, educate the next generation, stay connected and support daily life. They also fuel growth and create the conditions for long-term resilience.
“But confidence in the construction sector’s ability to deliver these projects is starting to crack. Economic shifts, supply chain challenges, currency changes and labour shortages are creating more uncertainty. And the impact is being felt far beyond the building site.”
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