The Building Cost Information Service (BCIS) is urging the government to use November’s Autumn Budget to lower business costs as construction professionals named it the most important thing which would help improve sector confidence in the year ahead.

The BCIS poll revealed that reducing business costs such as wage requirements and business rates was the most popular option, ahead of sector-specific measures like increasing investment in housing delivery and boosting infrastructure spending.

Dr David Crosthwaite, BCIS chief economist, said: “The government must recognise that to stimulate economic growth, it needs to better support all businesses – not just those in construction, and particularly SMEs which feel high business costs more keenly.

“Increasing employers’ national insurance contributions (NICs) in April reduced the impetus to invest, which has a direct impact on construction output and its ability to support the wider economy through the sector’s multiplier effect.

“I urge the government to rethink its stance on employers’ NICs in November’s Autumn Budget. The Chancellor is wedged between her own borrowing rules and the desperate need to raise public funds, but sticking with flawed manifesto pledges will not win favour or growth in the long-term.”

New data from the Department for Business and Trade revealed that SMEs account for at least 99% of the private business population across every major industry sector, with construction home to the largest share – around 885,000 SMEs, or 16% of the total. Further, since 2020, construction has seen a loss of 107,000 businesses.