𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

White van man Adam Healey has blasted the Budget for doing “next to nothing” to help the hard-working sole traders who are “the backbone of Britain”. For 12 years Adam, 44, has been running building firm IMR Services based in Marple near Stockport, Greater Manchester, to support his wife and two children aged 9 and 11. But he says he encounters a mixed bag of fellow tradespeople, and although most have plenty of work lined up, some are struggling with increasing costs. He hoped the October Budget would boost the ‘white van man’ by reducing their income tax burden as new Making Tax Digital laws mean having to pay HMRC more often, and by cutting VAT to help his customers – while hoping for cost-of-living aid on reducing energy, water and food bills to help his family.

But instead Adam told the Express: “I’m really disappointed by this Budget. Instead of tackling the big issues they have tackled lots of tiny, insignificant ones. Making tax digital means many sole traders like me are having to pay accountants to keep on top of the admin, plus instead of paying once or twice a year we are paying every quarter.

“Labour could have raised the tax free allowance, or reduce income tax levels for sole traders to encourage more people out of work to start a trade but they did nothing. And as a family man where are the efforts to reduce my food bills? They have cut the gas standing charge but the amount I will save a year is almost the cost of a couple of meals and drinks in the pub.

“The traditional ‘White Van Man’ is a sole trader who will work all day and go home to his family and see his earnings go on food, energy and water costs. You cannot separate the ‘home’ from the ‘work’.”

Adam says while some trades are often ‘DIY proof’ like complicated builds, plumbing or electrical works, a decorator he knows has had jobs cancelled as customers have no spare cash – so they are forced to try to paint or wallpaper their homes themselves to save money. Dean Laming, MD at specialist construction insurance provider Tradesman Saver, told us: “Rising costs and limited financial support are doing more than squeezing tradespeople’s weekly budgets. They’re stopping small businesses from investing in their own growth.

“Tradespeople need the confidence and financial headroom to invest in their businesses again. Supporting them to do that will have benefits far beyond the trades themselves.”

Tradesman Saver carried out research ahead of the Budget to see what tradespeople wanted from Labour to help their businesses grow and boost the economy. Top of the list was income tax relief or allowances (38%), followed by lower fuel duty or support with transport (36%), and increased tax relief on tools, equipment and vehicles (35%) in order to help them run their businesses more cost efficiently.

Tradespeople also wanted to see lower National Insurance contributions (27%); simpler tax rules (27%); grants or tax relief for upskilling and qualifications (18%), and better support with interest rates, borrowing, or access to finance (17%). Almost a third (30%) of tradespeople added that the Government could provide greater financial support during periods of illness or injury.

The new report also found that rising business costs mean 79% of tradespeople are currently having to balance or compromise on at least one business decision that is preventing them from growing their business. More than a third (37%) said costs are influencing decisions about which jobs they take on, with many turning down work and sacrificing income because the costs associated make it less viable.

Almost a third (30%) are weighing up whether to buy new tools and equipment, while one in five (19%) are reconsidering investment in further training and qualifications. A further 18% said financial pressures are affecting decisions about hiring people, and the same amount are cutting back on advertising and marketing to find new work.

The findings come as tradespeople face rising costs across both their businesses and households. Fuel and transport costs came out as the biggest financial pressure, affecting 45%, followed by household inflation (39%) and energy bills (34%).

The cost of tools and equipment is a concern for almost a third (29%); just over a quarter (26%) said income tax, and fifth (20%) said they’re being affected by late or missed customer payments.