NEWSROUND Industry reacts to Autumn Budget
Chancellor Rachel Reeves delivered the 2025 Autumn Budget, and voices from across the construction industry have been weighing in with their initial impressions of her plans. At the Builders Merchants Federation, CEO John Newcomb says that the organisation is concerned that the Budget is only about “the delivery of small incremental measures”, and that it has not done enough to bridge the gulf between the Government’s ambition to build 1.5 million new homes by July 2029, and the state of today’s market.
“We have stated that without Government intervention it was going to be difficult to move out of a stagnant market, so it’s disappointing to see no incentives to help first time buyers and stimulate the housing market.” He adds: “The Government is adding headwinds, with issues such as the increases to the National Living Wage
and National Minimum Wage, as well as the impact of the Extended Producer Responsibility for Packaging Waste, having a knock-on effect on investment and growth. And of major concern to our members and the wider economy is the Chancellor’s commitment to Inheritance Tax. “The end result could be a scaling back of the operations at SME merchants, suppliers and even builders in light of the changes, and that will have a significant impact on the whole economy.”
While the BMF feels the Budget lacks the ambition to boost economic growth and regional prosperity, it does welcome some moves made by the Chancellor. Newcomb added: “There were positive outcomes in some areas of the Budget. That includes moves to create developments around train stations and other transport hotspots, which will support the earlier announcement of at least three New Towns in
Buying group upheaval continues as Lords and Bradfords leave h&b
Independent family-owned builders merchant groups Lords and Bradfords Building Supplies have reached an agreement with the h&b buying group to leave at the end of 2025. Both companies have said that, while membership of the group has been extremely beneficial, the time has come for them to move on.
Lords’ merchanting chief operating officer, Steve Durdant-Hollamby, said: “h&b has been extremely good for Lords. However, changes in the wider market we operate in, and our own growth as a company – which h&b played a big part
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in – means this is now the right move. It will allow us the flexibility that we require to continue to develop our group in the future.” Bradfords’ CEO, David Young, said that the move away from h&b will give the Bradfords group an extra degree of flexibility and autonomy, which will support its continued future development. The notification to suppliers was sent out on November 27.
Bedfordshire, Leeds and Enfield this Parliament. “The Chancellor’s
announcement on Landfill Tax is also welcomed, as this is something the BMF, alongside other associations, petitioned for, with the Government now not proceeding with transitioning to a single rate of tax by 2030, and retaining the exemption for quarries with disposal permits. “The move to make training for under 25 apprenticeships completely free for SMEs is also a positive step, and we support an extension of the temporary five pence Road Fuel Duty being cut for an extra five months, which offers a further fuel duty freeze.
Toby Perkins MP visits Huws Gray
Toby Perkins, MP for Chesterfield, visited Huws Gray Building Supplies to see how merchants are preparing to supply the materials & products necessary to help to build 1½ million new homes, and improve flood resilience.
Toby Perkins MP was welcomed by Mark Walters (area director), David Oldfield (branch manager) and Brett Amphlett (BMF). Touring the branch, he was shown the building materials and home improvement products available to Huws Gray customers throughout its 250-branch network in England, Wales & Scotland.
Walters commented: “It is really important to Huws Gray that we recognise and respond to tomorrow’s challenges. This means striving to operate in the most sustainable way possible
and guiding our customers to incorporate energy efficiency and water conservation in their house- building and renovation projects”. “Surface water flooding, when heavy rainfall overwhelms drainage systems, is a growing threat. We have direct local experience of that here in Chesterfield and Derby when Storm Babet hit two years’ ago. The adoption of Sustainable Urban Drainage Systems at property level, such as permeable paving and rain gardens, will help to reduce the risk of surface water flooding”.
The constituency visit, organised by the BMF, coincided with the 35th anniversary of Huws Gray, which began trading in 1990.
www.buildersmerchantsjournal.net December 2025
“However, looking at the situation overall, the difference between what the Government says it will do and the
implementation and delivery is a major concern. We are looking more at the detail, but the feeling is that more could have been done to get Britain building.” “The changes to salary-sacrifice pension contributions are a particular concern. Employer National Insurance being applied above £2,000 per employee introduces a new, hidden cost - around 15p for every £1 contributed - which could amount to more than £100,000 a year for us. That’s investment that could otherwise support new roles, product development or further growth in West Sussex. On the flip side, the expansion of apprenticeships is a genuine positive and supports our long- term skills plan.”
“Ultimately, all businesses are navigating the same landscape. We’ll focus on what we can control: growing our market share, innovating and delivering for our customers.”
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