by René Lavanchy
Construction union UCATT has responded angrily to a new campaign by housebuilders to oppose plans to clamp down on false self-employment in the building industry.
The Treasury has said it intends to classify about 300,000 of Britain’s 800,000 self-employed construction workers as employees in order to reduce non-payment of income tax and National Insurance.
The Home Builders Federation and the Federation of Master Builders say that the plans will cost builders money and increase red tape, and launched a “stop the unfair building tax” campaign last week.
But the union counters that false self-employment leaves workers deprived of employment rights such as sick and holiday pay, and lacking health provision through National Insurance shortfalls.
UCATT general secretary Alan Ritchie responded this week: “Bogus self-employment corrupts the construction industry. This new campaign is purely an attempt to preserve unfair and unethical tax subsidies, only available to construction companies.
“The Government’s proposals will not only ensure that the Treasury receives proper revenues but will start to tackle the rampant casualisation which bedevils the construction industry.”
The Treasury’s proposals mean that any building worker who did not provide their own tools or machinery and did not employ other workers would be deemed to be employed. But, to UCATT’s disappointment, they will still be classed as self-employed for the purpose of employment rights, leaving them open to instant dismissal.
Brian Berry of the FMB said: “The current proposals will fall hardest on small construction companies whilst leaving black economy traders unscathed.”
