Brian Berry, chief executive of the FMB, argues that the budget was the new government's first opportunity to set its long-term financial plans for the country.

He says: “In challenging economic conditions, the Chancellor of the Exchequer delivered a mixed budget with promising plans for the long-term future of the construction industry. However, it will likely present substantial challenges to firms managing their finances.

“At a time when SME builders need a boost, they may, like many in the country, have to take a hit before they see things improve.”

FMB believes that the Chancellor’s decision to significantly increase employers’ National Insurance contributions will create major headaches for firms looking to hire staff when the building industry desperately needs new workers.

Berry also notes: “It is good that the Chancellor has shielded small companies by increasing employment allowance, as has 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.”

The FMB has been calling for more details of the Government’s plans to improve the energy efficiency of the UK’s homes, a key pledge in Labour's election manifesto.

The announcement of £3.2bn to fund the Warm Homes Plan will be crucial to attracting more SME building companies to the retrofit market.

He concludes: “The announcement of additional support for SME house builders to access low-cost loans is also welcome, and alongside the announcements on housebuilding made in recent months, offers hope for the future. SMEs have a crucial role in plans to build Britain again, and the Government mustn't lose sight of the challenges the sector continues to face.”