In yesterday’s budget, the first Labour party budget in 14 years, chancellor Rachel Reeves pledged a further £500m to the affordable homes programme.

She also announced an additional £3bn in support for SMEs and the BTR sector through housing guarantee schemes.

The Federation of Master Builders (FMB) was not impressed by these measures and still expects SME builders to “take a hit” before they see things get better.

Despite the extra funding for higher guarantee schemes, the FMB pointed out that other changes in the budget could impact SME builders as employers.

Brian Berry, CEO of FMB, explained: “The chancellor’s decision to significantly increase employers’ National Insurance contributions will create major headaches for firms looking to take on staff at a time when the building industry is in desperate need of new workers.

“However, it is good that the chancellor has shielded small companies by increasing Employment Allowance, as is the rise in the apprenticeship wage which will help increase the appeal of a career in construction for young people.

“Capital gains increases may also hit builders looking to sell off their companies when they look to retire.”

Also expressing concern for the impact of National Insurance increases on the construction industry was the National Federation of Builders (NFB).

Richard Beresford, CEO at the NFB, has argued this could have widespread implications: “The government’s target to deliver 1.5 million homes is now at a considerable risk due to the increase in employer national insurance contributions.

“This announcement will hinder the industry’s ability to take on and train new staff and support the next generation of skilled workers.

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“While some may point to planning reforms as the solution, those reforms have not yet been implemented, and it will take years before new projects avail of them.”

However, there was some support from corners of the construction industry. Pocket Living - a long-time advocate of SME builders - backed the chancellor’s commitments, with managing director Paul Rickard highlighting the plight of smaller building companies.

According to Paul, the number of SME housebuilders has dwindled from 12,500 in the 1980s to just 2,500 today.

Speaking on the day of the budget, Paul said: “Today's measures are a welcome step forward as we await a comprehensive plan for SME housebuilding as a key part of the government’s housing strategy in the Spring.

“We need more innovation and entrepreneurship in the sector, and the newly created Skills England should also make construction a key area of focus.

“A £5bn settlement for housing investment in 2025 is positive, and the government could still go further and unlock additional capital for investment in future years through the sale of Homes England’s help to buy loan book.”

Others are less optimistic. Olivia Harris, CEO of Dolphin Living, welcomed the additional £500m available for affordable housing but said overall the budget was “disappointing”.

Instead, Olivia wants to see a long-term commitment from the government towards housing delivery with particular focus towards rented housing stock.

"A commitment to consistent support in the form of grants and a clear rent settlement will empower us to meet the pressing needs of essential workers and ensure the sustainability of our communities,” said Olivia.

"With high living costs placing substantial pressure on essential workers and median earners - many of whom cannot afford market rent yet do not qualify for social housing - it’s vital that affordable, quality homes for rent in accessible locations are central to the government’s housing agenda.”