The Government has extended the 5p fuel duty cut until the end of June 2027, while confirming higher minimum wage rates from April in measures affecting scaffolding contractors’ transport and employment costs.
In its response to the 28 October Budget, NASC said the measures offered limited immediate relief, with longer-term opportunities dependent on investment reaching construction sites.
Clive Dickin, group CEO of NASC and CISRS, said: “For NASC members, the Budget offered limited short-term relief alongside potential longer-term opportunities.”
Fuel duty increase delayed
Announced in the Budget on 28 October, the six-month extension postpones the reversal of the temporary duty reduction that had been due from January. The planned inflation increase has also been deferred.
HMRC’s tax policy document says the extension will run from 1 January to 30 June 2027. From 1 July, rates are due to return to their pre-March 2022 levels and rise in line with the Retail Prices Index.
For contractors running vans and lorries, the announcement delays a tax increase rather than introducing a new reduction in pump prices.
Minimum pay rates rise in April
The Treasury’s Budget document confirms that the National Living Wage will rise by 3.9% to £13.21 an hour from 1 April 2027.
The minimum rate for 18 to 20-year-olds will increase to £11.27. For 16 to 17-year-olds and eligible apprentices, it will rise to £8.31. These rates also represent increases of 3.9%.
The changes set statutory minimum pay levels, rather than a sector-wide pay settlement for scaffolders. Their direct payroll effect will depend on the rates individual contractors already pay and which workers qualify for each minimum.
Apprenticeships and future workload
The Government will require apprentices to make up at least 3% of workforces on large government construction and infrastructure projects. This is a project-level measure, not a blanket requirement for every scaffolding firm.
It will also provide £100m across 2027–28 and 2028–29 to expand apprenticeship brokerage pilots from seven to 14 mayoral strategic authorities in England, helping employers, particularly SMEs, create opportunities.
Dickin said: “Their effectiveness will depend on ensuring specialist trades, including scaffolding, are adequately represented in training programmes and procurement requirements.”
An updated infrastructure pipeline, due before the end of 2026, will identify more than £750bn of planned investment over ten years and an expected workforce requirement above 650,000 people.
Those figures describe the planned pipeline and workforce demand, not a new £750bn spending allocation or 650,000 newly created jobs. For access contractors, the commercial opportunities will depend on projects progressing through procurement and into construction.
Delivery remains the test
The Budget also increases the British Business Bank’s financial capacity by £5bn. This supports business finance programmes, including delivery of a Growth Guarantee Scheme expansion previously announced at Mansion House, rather than a dedicated fund for scaffolding firms.
NASC welcomed the potential investment opportunities but warned against treating announcements as immediate work.
Dickin said: “But planned investment does not automatically translate into immediate contracts. The timing of project approvals, procurement and construction starts will determine when the sector benefits.”
