𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

An industry expert has suggested that Andy Burnham must alleviate pressure on construction firms if he becomes the Prime Minister. Companies are being hit by higher employer national insurance contributions and inheritance tax reforms, introduced by Rachel Reeves, Steven Mulholland, CEO of the Construction Plant-hire Association, said. A government led by Mr Burnham would also need to combat rising costs and skills shortages, the expert added.

It comes as voters are set to go to the polls on June 18 in the Makerfield by-election, which could see the Mayor of Greater Manchester elected as an MP. He has confirmed that he would join a leadership contest, if Sir Keir Starmer were challenged. Mr Burnham has said there should be a greater focus on council and social housing, and homes should be treated as essential infrastructure, rather than primarily a market commodity. In addition, the Mayor has called for more powers and funding for regional authorities and leaders to deliver housing locally, as well as reform of Homes England, with less centralised oversight and greater flexibility for local areas.

The former Cabinet member would also wants to see changes made to Right to Buy, with a focus on ensuring social housing stock is replaced and expanded, and ensure stronger protections for tenants and tougher action against rogue landlords.

Wider intervention in the housing market, Mr Burnham has also advocated, including support for stronger powers to acquire poor-quality private rented homes in certain circumstances.

Mr Mulholland said: “Andy Burnham is right to highlight the need for more homes, including more social and council housing, and there is a strong case for giving local leaders greater freedom to deliver them. But the housing debate too often focuses on ownership when the bigger challenge is delivery.

“Whether homes are social, affordable or private, they still need skilled people, machinery, investment and viable construction businesses to build them.

“The reality on the ground is that construction firms are being squeezed by rising costs, skills shortages, higher National Insurance contributions and inheritance tax reforms. We are already seeing the consequences, with construction output falling at its fastest rate in more than six years – highlighting the gap between housing ambition and delivery reality.

“If government wants to build significantly more homes, it must do more than set targets. It needs to create the conditions for the construction supply chain to invest, recruit and grow.”

The changes to inheritance tax, which came into force on April 6, mean any inheritance above a £2.5million threshold will face an effective tax rate of 20%.

It came after the threshold was raised to £2.5million from an initial £1million for firms claiming agricultural and business property relief after a huge backlash.

It has been claimed that family-run construction firms are being pushed to the brink of insolvency due to the policy.