Skills shortage, high taxes and rising costs are holding back trades

​​​​​​​A study reveals major barriers prevent the UK’s 900,000 plumbers, roofers, and carpenters from growing their businesses

A new report finds that the UK’s 900,000 tradespeople, including electricians, plumbers, painters, and decorators, are struggling to expand their businesses because of growing costs, the burden of bureaucracy, and major hiring pressures. 

Based on data from 850 people working in the trade industry across the UK, Checkatrade’s Trade Nation report reveals British trades are eager to contribute to the Government’s growth agenda. Still, key challenges are preventing them from doing so.  

The report reveals tradespeople among the hungriest and ambitious sectors of the British workforce.

Seven-in-ten (72%) tradespeople are confident about their future, compared with just 7% who feel pessimistic about what lies ahead.

This contrasts with the business sector more broadly, which is less positive than tradespeople.

According to recent analysis by the British Chambers of Commerce, just over half (56%) of businesses surveyed believe the UK economy has untapped potential.

Moreover, despite challenging conditions, a remarkable nine-in-ten (90%) have ambitions to own a business or co-own a firm.

Rising costs of materials and tools, particularly amid concerns around increasingly high levels of tool theft across the country, are preventing growth for four-fifths (79%) of tradespeople, growing to nearly nine-in-ten (89%) among the smallest businesses.

Rising taxes, like the increase in employer National Insurance Contributions, are identified by seven-in-ten (69%) trades as a block on their business growth. 

Trade business expansion, which contributes £138bn to the economy each year, is also being cut back because of the industry's major skills shortages. 

Seven in ten (71%) tradespeople say skills gaps are causing major challenges for their company. The issue is most pronounced in high-growth sectors, such as home decarbonisation and retrofit technologies, where nearly nine in ten (88%) tradespeople are affected.

As the number of new apprentices’ stalls nationally, tradespeople like carpenters, roofers and electricians who once relied on apprenticeships to get into the industry now say traditional training routes aren't working anymore.

Nearly half (47%) of trades say they have never hired an apprentice and have no plans to do so, with the costs associated as the primary concern. 

Checkatrade has suggested several solutions to these issues. One is asking the Government to offer tax relief for trades when they hire their first apprentice to encourage more young people to join the profession.

As well as requesting a review of the business tax system to promote growth and help trades expand despite increasing costs and inflation; and supporting tighter regulation to eliminate late payments.