Ongoing supplies shortages are costing UK tradespeople over £3.5bn in lost earnings – with the vast majority forced to delay projects or turn down work, according to new research.
The study by small business insurance provider Simply Business found over a quarter, 27%, of tradespeople said they had to delay projects by a minimum of four-eight weeks.
Nearly one in five had had to delay projects by eight-12 weeks, and a further one in six had delayed a project by three months or more.
The supplies shortage, caused by a damaging combination of unprecedented demand, tighter restrictions on imports after Brexit, and rising costs of materials, had left tradespeople facing a £3.5bn loss, the insurer stated.
The tradespeople surveyed had lost an average of £5,598 each as a result of rising material costs and a drop in earnings from needing to turn down work. One in five have lost over £10,000 each.
Overall, 79% of the UK’s 801,000 self-employed tradespeople were estimated to be affected by the shortages.
As the UK recovers from Covid-19, 34% of tradespeople believed a post-pandemic surge in demand has been the top factor in driving the current material shortage.
A further third said the impact of Brexit on imports – with delayed border checks, tightened restrictions and trade barriers – was adding to the challenge. Twelve per cent felt Covid-19 travel restrictions were also playing a part.
Alan Thomas, UK CEO at Simply Business, said: “The ongoing supplies shortage is having a significant impact on tradespeople in the UK at a crucial time in their recovery from the effects of the pandemic.
“This is a huge blow to the livelihoods and dreams of so many tradespeople across the country, but the ongoing situation should concern us all – small businesses are crucial to the UK, contributing trillions of pounds each year in turnover. A £3.5 billion hole in the books of self-employed tradespeople damages the wider economy, and it’s vital that they’re given the support they need to navigate this period of uncertainty.
“Thankfully, we’ve seen remarkable resilience among the trades community throughout the pandemic, and it’s encouraging to see almost half of tradespeople remain optimistic about the future despite current challenges. Tradespeople will play a key role in the rebuilding of our economy and communities, and their resilience in the face of such challenges should give us all confidence that we’re on the right tracks to recovery.”