Wet weather and Budget uncertainty hit pay rates for tradespeople in November, survey finds
A combination of wet weather and economic uncertainty leading up to the Budget have been blamed for pay rates for tradespeople slipping last month.
Construction industry pay trends analysis conducted by Bridlington-based Hudson Contract found average earnings for self-employed tradespeople decreased by 0.5 per cent from October to November, to £1,070 per week, though they remained 1.6 per cent higher year-on-year.
The best-performing trades were joiners (up 7.7 per cent to £1,213), plumbers (up 4 per cent to £1,284), and other specialists (up 3.4 per cent to £977).
Bricklaying (down 6.8 per cent to £941), scaffolding (down 4.7 per cent to £1,001), and demolition and wrecking (down 4.6 per cent to £1,066) saw the biggest falls.
Skilled freelancers operating in the South East and East of England enjoyed record high earnings rising 2.5 per cent each to £1,182 and £1,176 respectively. The regional outperformance, however, masked a tougher picture for most trades nationwide.
Ian Anfield, managing director of Hudson Contract, said what was announced in the Budget proved to be disappointing for the industry.
“There were two key factors affecting pay trends during November – business concerns ahead of the Budget and the wettest month we've seen all year.
“We were hoping the budget would provide some stability and measures to kick-start housebuilding, but all we got was more red tape, levies and quangos that will prove to be a further drag on economic growth.”
Government Budget documents state planning reforms are having a positive impact on housebuilding.
They say: “The new National Planning Policy Framework is estimated by the Office for Budget Responsibility to increase annual housebuilding by around 30% by 2029-30, taking net additions to a 40 year high, and resulting in an additional 170,000 homes over the forecast, adding £6.8 billion to the economy
Among the other announcements in the Budget was a pledge by the Government to strengthen HMRC powers to tackle fraud within the Constructi.”on Industry Scheme.
Under the scheme, contractors deduct money from a subcontractor’s payments and pass it to HMRC. The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Hudson, which is a provider of business services to the construction industry, tracks average pay for 17 different trades across 10 regions in England and Wales, supplying labour market statistics to the Bank of England to inform policy decisions on skilled labour demand.
The Office for National Statistics separately recorded a 0.6 per cent fall in output for the construction sector in October as it released new economic figures on Friday.