Chancellor vows to stamp out bogus self employment

Aaron Morby 5 years ago
Share

Chancellor George Osborne  warned his job was not done in the Autumn Statement yesterday but said Britain was well on course for a strong recovery.

He said the Government would now roll out the largest package of measures to tackle tax avoidance for more than a decade, raising £9bn over five years.

This includes a clampdown on payroll companies disguising employment as false self employment.

According to latest Treasury estimates around 300,000 workers in construction were in this position – costing more than £380m.

The government will consult on strengthening existing legislation to ensure the correct amount of tax and NICs are paid where the worker is, in effect, employed, with effect from April 2014.

The Chancellor also said the Government wanted more people to own a home which meant the country needed to build new homes.

“Residential construction is growing at fastest rate in a decade. We need to do more. This week I am launching £1bn in loans to help unlock big sites.”

The first loans will be targeted at sites in Leeds and Manchester to get house building moving.

Overall, the six-year programme is expected to support the development of up to 250,000 homes.

The programme will begin in 2014-15, with investment decisions on nine specific sites, capable of unlocking around 27,000 houses.

Around £50m will be earmarked for Local Enterprise Partnership supported bids, to deliver on their ambitions for housing growth.

He also relaxed the borrowing cap imposed on councils to pave the way for them to build an estimated 10,000 homes.

Local authorities, who have argued for more housebuilding freedoms, said the £300m two-year relaxation plan did not go far enough. Removing the borrowing cap completely would have allowed them to build 60,000 new homes.

The Chancellor said he would give the Bank of England power to deal with asset bubbles if they threatened economic stability but said recent price growth presented no risk.

He said: “House prices have risen but the OBR forecast this will not create overheating and will still be 3.1% lower in 2018 compared to 2007.”

Autumn statement at a glance

Construction

  • £11m to help build Higgs Centre at University of Edinburgh
  • £30m towards planned Garden Bridge over the Thames
  • £1bn in loans to boost housing developments in Manchester and Leeds, among other sites.
  • The Housing Revenue Account borrowing limit to rise by £300m, delivering extra 10,000 homes.
  • Councils to sell off the most expensive social housing and rundown urban housing estates to be regenerated.
  • The government will consult on a new 10 unit threshold
    for section 106 affordable housing contributions to reduce costs for smaller builders.

Economy

  • Growth forecasts revised up from 0.6% to 1.4% this year and next year revised up from 1.8% to 2.4%
  • In 2018-19, the Office for Budget Responsibility predicts small cash surplus.
  • Unemployment down from 7.6% this year to 7% in 2015

Taxes

    • Personal income tax allowance will rise to £10,000 from April 2014
    • From April 2015, non-residents to pay capital gains tax on homes in the UK.
    • Business rates to be capped at 2%

Education

  • 30,000 more student places allowed
  • Extra 20,000 apprenticeships funded over the next two years
  • £150m to be spent on school kitchens to fund free meals pledge

Transport

  • Autumn fuel duty rise cancelled

Latest news

Argent gets go-ahead for major Tottenham Hale revamp

Contractor hunt to start soon with construction set to start next summer
10 hours ago

£2bn Elephant & Castle shopping centre scheme final go-ahead

Demolition to start after London mayor nods through vast scheme
14 hours ago

Drylining boss banned for tax dodging

Insolvency Service investigators uncover huge CIS and VAT payment discrepancies
10 hours ago

Modular building specialist goes into administration

Timber accommodation pod maker Carbon Dynamic runs out of cash on major contract
13 hours ago

Structural engineer crushed under scaffold tubes

Housing giant and scaffold contractor fined a total of £180,000
14 hours ago

Consultant MHBC merges with Cumming

City of London based firm now part of global giant
13 hours ago

Crossrail delayed again as costs rise by another £2bn

Mayor attacks previous management team who insisted project was "on time and on budget"
1 day ago

Top housing association hires Lendlease resi chief

Richard Cook will lead Clarion Group's ambitious development plans
1 day ago

UK’s tallest Premier Inn plan in Docklands

Premier Inn books in at 30-storey mixed resi and hotel scheme
13 hours ago

Kier wins £45m Cambridge schools campus phase one

Northstowe education campus includes a new 1,800 pupil secondary
14 hours ago

Ian Lawson to advise McLaren on growth plans

Former Severfield and Kier boss becomes consultant at expanding contractor
1 day ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
7 months ago

Interserve shares collapse as rescue talks continue

Shares slump to all-time low as firm now worth under £13m
2 days ago

Forrest falls into administration

Construction and housing divisions to cease trading while Engie buys refurb and energy contracts
4 days ago

Wates chief draws up first best behaviour code for private firms

Wates Principles to raise corporate governance standards at private firms
2 days ago

Plan for Bristol Finzels Reach £140m phase 2

Former Avon Fire and Rescue HQ to be transformed with 300 homes and offices
2 days ago

Labour calls for public contract bidding ban on Interserve

Shadow minister demands action to protect taxpayers
2 days ago

£750m East of England framework out for rebid

Construction work to be broken into four project value bands
2 days ago

Lakehouse staff let go as subcontractors quit sites

Workers made redundant and suppliers leaving sites just months after sale
5 days ago

Kier scores November contracts league double

£300m London luxury flats project extends Kier's lead at top of annualised league
5 days ago

Green light for £300m Norwich mixed used scheme

Weston Homes to build 1.2m sq ft scheme creating a "Covent Garden" style urban quarter
5 days ago

Former Kier boss joins McCarthy & Stone

Nigel Turner to lead drive to reduce construction costs
5 days ago

Vermont replaces Forrest on £100m Liverpool site

Elliot Group moves quickly to secure new main contractor as existing site team taken on
5 days ago

Bristol contractor goes into administration

Majority of 50-strong workforce at Helm Construction made redundant
5 days ago

Kier drops out of FTSE 250 as share price dives

Shares trade below discounted rights issue price
6 days ago

Betting Spy: No Arnie no problem for West Ham

West Ham and Man City to land 3/1 double
5 days ago

36-hour Hinkley Point concrete pour releases £70m

BYLOR achieves key concrete raft milestone in 2,500 cu m pour
6 days ago

Murphy major projects chief joins Galliford Try

Sean Blackmore to lead expansion in the rail market
6 days ago

Multiplex Europe MD shifts to non-exec role

Ross Ballingall moves on after eight years heading construction business
6 days ago

MPs demand end to late payment and retentions reform

Hard-hitting select committee report demands end to cash "stranglehold" imposed by big firms
6 days ago

Contractor services