Chancellor vows to stamp out bogus self employment

Aaron Morby 7 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

Construction set to grow by 14% this year

'W' shaped recession and recovery as housing and infrastructure lead the way
12 hours ago

Wates to start on Oxford university’s biggest building job

Planning green light means construction can start this summer on £200m Life and Mind Building
17 hours ago

Galliford Try set to return to profitability

Contractor starts 2021 with a £3.3bn order book
19 hours ago

Duo win design for £400m concrete roads renewal plan

Atkins and Aecom seal £39m design deal to upgrade 600 miles of concrete roads
2 days ago

Van Elle eyes strong recovery after challenging first half

Piling contractor confident market growth will drive return to profitability
20 hours ago

£250m A1 Birtley to Coal House upgrade approved

Costain A1 upgrade job adjacent to the Angel of the North to start within months
20 hours ago

Eric Wright to pave way for £180m Wirral Waters neighbourhood

Infrastructure package awarded on latest phase of transformation of River Mersey bank
19 hours ago

May start for McAleer & Rushe £47m Leeds office job

12-storey City Square House project to start in May
1 day ago

New regulator to police construction materials safety

New watchdog will carry out its own testing in bid to stamp-out abuse by manufacturers
2 days ago

Kier continues to battle with high debts

Average monthly debt stuck around £436m despite reported better trading
2 days ago

Government confirms no threat to shut London sites

Construction will continue in capital despite fears over crowded tube trains
2 days ago

Leo Quinn leads for construction on PM’s Build Back Better Council

Prime Minister brings in 30 captains of industry to advise on economic recovery plan
2 days ago

Prompt Payment Code invoice target cut to 30 days

Major contractors must now vow to pay smaller suppliers within the month
2 days ago

Cladding and Covid costs Watkin Jones £20.5m

Student and build to rent specialist confident about year ahead
2 days ago

Boot ends 2020 ahead of expectations

Boot starts 2021 on a high with strong order book
2 days ago

Plant hire firm plans £33.8m tourism development

Perthshire site will see construction of hotel, lodges and transport museum
3 days ago

Contractors called up for new £1.5bn housing framework

LHC to roll out next-generation national new-build housing framework
3 days ago

Jenrick approves £250m West London urban village

London developer Avanton to start construction of two major schemes this year
3 days ago

BCEGI plans August start for £30m office in Middlesbrough

Plans in for seven-floor Boho X digital creative hub
3 days ago

McLaren group managing director leaves for new challenge

David Murphy parts company with contractor after 11 years
3 days ago

M&E contractor Playfords plans expansion after MBO

New management team set £20m turnover target for centenary year in 2025
3 days ago

Self-employed wages up 9% in north west

Average freelance trade wages running nearly 10% below pre-pandemic level
6 days ago

Tube chiefs tell contractors trains are safe for builders

Contractors encouraged to stagger site start times in London
6 days ago

Construction recovers to pre-pandemic level

New work output grew 3.5% in November lifting output above February 2020 pre-shutdown level
6 days ago

Colas rolls out weekly Covid rapid testing for staff

Build UK trade body offers member firms lateral flow kits at a discount
6 days ago

Cemex invests in “kit of parts” offsite housing firm

Materials giant backs Modulous to "revolutionise" housing industry
6 days ago

House building bounce back hailed by minister

Latest official statistics show completions tripled in the third quarter of 2019
7 days ago

Government clears 514-home London Master Brewer scheme

Housing secretary decides not to call in Hillingdon Gardens scheme
6 days ago

Aarsleff shifts to expansion after return to profit

Ground engineering contractor optimistic with 12 months of good work visibilty
6 days ago

Fresh shock structural steel price hike

Price of structural steel jumps nearly 50% in just over six months
7 days ago

Contractor services