FMB suggests finance schemes for builders ‘must be simplified’
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Well we have all been there want to take on a job and havent got the funds to see the job out with materials labour fuel its not easy and this is what the federation of master Builders have reiterated in comments made by Brian Berry.
Schemes should be released to help construction SMEs and also need to be simplified if they are to aid the economic recovery, warns the Federation of Master Builders (FMB) in response to a National Audit Office (NAO) report that criticises the Government for its confused approach towards business funding.
Brian Berry, Chief Executive of the FMB, recently said: “Initiatives such as Funding for Lending and the recently launched Business Bank, designed to make financing more accessible for small businesses, are failing to help construction SMEs because the banks remain reluctant to lend to them. Construction companies need to able to secure financing to grow their business in line with demand, which is why it is so important to remove any barriers that prevent this from happening.”
Berry continued: “Many small business owners are confused about which finance schemes they can access. We know from our members that banks, including those backed by Funding for Lending guarantees, are discriminating against companies operating in the construction sector. This is hampering house building, because two thirds of our house builders are citing difficulty in accessing business finance as a major barrier to their ability to build more new homes.”
Berry also said: “Unless the Government acts now to unify and simplify the schemes on offer, as well as stamp out discrimination against building firms applying for the loans and overdrafts they need to buy materials, hire plant or take on extra staff, then the opportunities presented by the improving economic conditions will be lost.”
Berry concluded: “We also need a reduction in VAT on domestic building work to 5 percent, which can secure the recovery and rescue the Green Deal. Such a cut would also be an economic boon to householders looking to carry out vital repair and maintenance work and make their homes more energy efficient.”
Lets hope there is a scheme released to builders and contractors can take on the work to employ more workers and generate growth.