BALI SAYS BUDGET A MIXED BAG FOR MEMBERS
Landscapers facing increased costs
The British Association of Landscape Industries (BALI) has issued a statement saying that George Osborne's budget will mean increased costs for their members.
The Association said in a statement, "This is headlined as a budget for working people, which means that it will inevitably impact on the country’s wealth creators, i.e. business owners. BALI members large and small will therefore be bracing themselves for an increased cost burden over the next five years."
The statement goes on to criticise the newly announced National Living Wage, saying, "The new National Living Wage for employees over 25 to a target £9/hour by 2020 will undoubtedly affect our members. The landscape industry is dogged by client perception - which is also fact - that pay in this sector is low. We continue to fight for recognition by clients that this is an industry of skilled employees who should be paid at a rate commensurate with the work undertaken and that those rates be reflected in tender pricing."
Further criticism was aimed at the Annual Investment Allowance for spend on plant and machinery which is to be markedly reduced and fixed from its current postion of £500,000, to £200,000 per annum from 1st January 2016. They said, "BALI members are beginning to see some realistic medium term growth and the increased AIA had undoubtedly helped. The new, greatly reduced, allowance could affect their investment decisions going forward, albeit it is now a permanent figure."
Other concerns voiced included the intention to place an apprenticeship levy on large firms, the removal of Annual Employment Allowance from one-person companies with effect from 1st April 2016 and further public sector cuts.
However, they were fairly upbeat over a couple of elements of the budget. They see the planned reductions in Corporation Tax as positive, as they do the reduction in small firms’ National Insurance contributions.
Also they concluded, "We pleased to see that fuel duty has been frozen as transport costs remain a huge issue for our industry and the supply chain. That said, insurance premium tax is due to be increased by another 3.5%!"
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