The Federation of Master Builders (FMB) has reacted angrily to the news that the Business Rate Supplements Bill has been included in the Government's legislative programme, branding it yet another kick in the teeth for a construction industry already suffering as a result of the credit crunch.

This new legislation will enable upper tier local authorities and the Greater London Authority to levy a supplement on their business rates. The supplement can be set at up to 2p per pound of rateable value.

The construction industry has already been particularly badly hit as a result of the credit crunch and the down turn in the housing market. The industry is facing its biggest challenge for many years. The indicators are that many will struggle to survive in the current market, with the Royal Institution of Chartered Surveyors (RICS) predicting the loss of more than 300,000 jobs within the industry and with 41% of SME builders warning that they will be making staff redundant over the coming months.


Brian Berry, Director of External Affairs at the FMB said: "Two weeks ago the Government announced their fiscal stimulus package, designed to pump money into the economy, but two days later passed the Planning Bill which will enable local authorities to charge the Community Infrastructure Levy, and now they announce their plans to enable local authorities to charge businesses even more via the Business Rates Supplement Bill.

"At a time when 60% of FMB house builders are reporting falling workloads, the last thing builders need is yet another tax. The Government says it wants to help the construction industry, but again has done the exact opposite by introducing more regulation and another tax that will disproportionately hit SME builders. These new taxes will drain business resources, disproportionately impact on SMEs and increases the competitive advantage of the informal economy. All of this impacts on the overall competitiveness of the construction sector and may be the final blow for many companies."

(CD/JM)