THE WORD AT WESTMINSTER
How will last year’s Autumn Budget affect your business in 2026? FMB Head of External Affairs Jeremy Gray gives you the answer WHAT’S UP AT WESTMINSTER?
1 Landfill tax reform – a big win for builders
3 £48 million boost to planning capacity
On top of that, income tax thresholds are frozen until 2031, so more builders could be pushed into higher tax brackets. What it means for you: Costs will rise so careful budgeting will be essential. 5 Dividend tax rates are going up If you pay yourself through dividends, take note, from April 2026, the ordinary and upper rates of dividend tax will rise by two percentage points. What it means for you: More money goes to HMRC and less ends up in your pocket. For many small business owners, this will feel like another squeeze on already tight margins. What was missing? Upgrading Britain’s ageing homes is vital for energy efficiency and comfort, but the Budget offered no new support for retrofit projects. In fact, the Energy Company Obligation (ECO) scheme is being scrapped. This is a missed opportunity, and we will continue to call for a national retrofit strategy to help builders play their part in improving homes. The Budget delivers wins for small builders, but it also leaves big gaps that need urgent attention. From fairer taxes and better planning systems to a national retrofit strategy, the FMB will keep fighting for the changes that matter most to you.
The government has pulled back on plans to merge landfill tax rates, which could have added £28,000 to the cost of building new homes. Instead, the gap between the two rates will be narrowed. What it means for you: it will help to keep costs down. While this is positive, the system is complicated, and the FMB will push for further simplification. 2 Free apprenticeship training for under-25s in SMEs If you’re thinking about hiring an apprentice who’s younger than 25, here’s the good news: training will now be completely free for SMEs. What it means for you: No co- investment costs so it’s easier to bring young talent into your business. The government has also promised to simplify the application process, so taking on an apprentice should become easier.
Delays in planning are one of the biggest frustrations for builders. The government is investing £48 million over the next three years to strengthen planning departments and speed up decisions. This includes hiring more planners and improving systems. Given the scale of the problem, we will keep pressing for more support to get projects moving. What it means for you: It’s too soon to say but if it works out the planning process will become more streamlined. 4 Minimum Wage rise and tax threshold freeze The National Living Wage will rise to £12.71 per hour from April 2026. This is good news for workers, of course, but tougher for small businesses already under pressure as costs will increase.
We’ll push the government to back Britain’s builders, because when you succeed, our communities thrive.
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Master Builder
www.fmb.org.uk
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