What does the Spring Budget mean for KBB installation businesses?

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News
DATE:
7.3.2024
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Following Chancellor Jeremy Hunt’s Spring Budget announcement yesterday, the British Institute of Kitchen, Bedroom & Bathroom Installation (BiKBBI) CEO, Damian Walters, reacts to the new measures and the impact for installation businesses and installers operating in the UK KBB industry.

"Businesses of all sizes will recognise that the Chancellor had to find some ‘middle ground’ amidst an ongoing challenging financial environment. There were things that small businesses and sole traders will welcome in the Spring Budget statement, particularly the further cuts to national insurance and the decision to maintain the fuel duty freeze. Installers are feeling the pinch as much as anyone and these simple measures will leave them with a bit more in their pockets at the end of each month.

The decision to extend the VAT threshold was also good news. It's widely known that a lot of self-employed people and small businesses find themselves hovering just below the threshold to avoid being drawn into the VAT trap, so raising it to £90,000 will be a powerful incentive for many to take on more work and grow their businesses. The extension of the Recovery Loan Scheme into the 'Growth Guarantee Scheme' will also help a lot of SMEs.

Importantly, the Government has also published new guidelines on the tax deductibility of training costs for sole traders and the self-employed. The updated guidance is good news for anyone planning on developing their skills to benefit their existing business, and we're encouraging BiKBBI registered installers to make full use of all of available tax deductions to help grow their businesses and close the skills gap in our industry.

The wider economic picture continues to be a concern, with economic output per head projected to fall in the coming year. This means less money to go around and tough choices for consumers. Positively, the home improvement industry has fared well, riding the post-pandemic years relatively unscathed. However, we must fully recognise that the country as a whole is in a period of political and economic instability. Unless we want to continue a ‘race to the bottom’ by using price as the lever, we should focus on our value proposition and demonstrating that consumer trust is well placed when choosing to invest in our industry.”

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