RED TAPE STIFLES CONSTRUCTION SECTOR

THE Federation of Master Builders (FMB) has welcomed the recent announcement of a simplification of the administrative and tax burdens placed on smaller businesses, following a survey which shows that ever-increasing amounts of red tape are threatening the future of building firms.

Bureaucracy is cited as the main threat to business by almost half of all respondents to the FMB survey, with over 42 per cent spending more than two days per week on dealing with administrative matters.

The response is unsurprising in view of the increased legislation afflicting the sector – and business in general – in recent years. Although the FMB described the aim of the legislation as laudable, the organisation pointed out that while it may be needed to regulate the affairs of large organisations, the majority of the building industry is made of small and medium sized businesses which lack the in-house specialists to deal with increased and ongoing amounts of paperwork.

In addition to this, the construction industry has its own specific bureaucratic headache in the form of the Construction Industry Scheme, which has been described as ’top heavy’ in terms of paperwork and potentially negative in its effect on the taxation of sub-contractors.

The Federation of Master Builders is the construction industry’s largest trade organisation and represents the interests of over 14,000 firms in the sector. (CL)