The efficacy of any national budget is rarely judged on neutral economic facts alone; it is filtered through the pre-existing biases, hopes, and fears of its audience. The Autumn Budget 2025, delivered by Chancellor Rachel Reeves, was no exception.
For the UK construction sector – a vast ecosystem comprising giant contractors, small family-run firms, and millions of individual tradespeople – the balance sheet was decided long before the Chancellor stood up. It was defined by whether one’s personal or commercial interest was being served or sacrificed. For every measure welcomed by one segment of the industry, a contradictory fear was immediately voiced by another.
Perhaps the most potent immediate contradiction is the labour cost increase.
For the individual worker, the announcement of an increase in the legal minimum wage was undeniably positive news. The National Living Wage for over-21s will rise by 4.1% to £12.71 per hour in April, while the rate for 18 to 20-year-olds will jump 8.5% to £10.85 per hour, moving towards a single rate for all adults. Furthermore, minimum wages for 16 to 17-year-olds and apprentices will increase by 6% to £8 an hour.
These increases represent at least a degree of relief for low-paid workers grappling with persistent inflationary pressures.
Yet, this relief for the employee immediately translated into a “massive blow” for the employer.
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