Government urged to rethink flawed business costs model
Original Article Summary
The Building Cost Information Service (BCIS) has urged the government to use November’s Autumn Budget to lower business costs. Reducing business costs such as wage requirements and business rates was the number one priority for construction professionals, ahead of sector-specific measures like increasing investment in housing delivery and boosting infrastructure spending, a BCIS poll shows. […] The post Government urged to rethink flawed business costs model appeared first on PropertyWire.
PropMatch Curated Analysis
Construction industry experts urge government to reduce business costs including National Insurance contributions and business rates, with two-thirds expecting materials and labor costs to rise over the next 12 months, directly impacting development profitability.
Investor Relevance
Rising construction costs directly impact development margins and project viability. Changes to National Insurance contributions, business rates, and wage requirements affect operating costs for property businesses. The 68% expectation of materials cost increases and 65% labor cost increases over 12 months signals budget pressure for active developments and acquisition planning.
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