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, a new report finds.
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 but key challenges are preventing them from doing so.
The report reveals tradespeople to be among the most hungry 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 there is untapped potential in the UK economy.
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 in the midst of 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.
And rising taxes, like the increase in employer National Insurance Contributions, are identified by seven-in-every-ten (69%) trades as a block on their business growth.
Expansion for trade businesses, which contribute £138bn to the economy each year, is also being cut back because of major skills shortages facing the industry.
Seven-in-ten (71%) tradespeople say skills gaps are causing major challenges for their company, and 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 main concern.
Checkatrade, the UK’s leading home improvement platform, which represents more than 100,000 British tradespeople, has set out recommendations to help combat these challenges. These include urging the Government to introduce tax relief for trades when they take on an apprentice for the first time, aimed at encouraging more young people into the profession; calling for a review of the business tax regime to drive growth and make it easier for trades to expand amid the pressure of rising costs and inflation; and advocating for stricter regulation to put an end to late payments.
Jambu Palaniappan, CEO of Checkatrade, said: “The UK is a nation dependent on the trade industry — from carpenters to electricians, decorators to roofers. The 900,000 people behind it couldn’t be more important for propelling our economy, and our research shows how eager they are to contribute to the Government’s growth agenda.
“As white-collar work is disrupted by AI, tradespeople will become even more important in driving growth across the economy. More young people will begin to look beyond the traditional secondary school–to–university pathway and recognise that there has never been a better time to take up a trade and build a business.
“While there is an abundance of optimism and significant opportunities for growth, challenges remain. Government needs to work with industry to close skills gaps, ensure apprenticeships work for small businesses, and do everything they can to reduce the burdens, the costs, and the taxes that can stifle tradespeople’s growth.”
