THE Construction Plant-hire Association (CPA) has announced it is seeking clarification on details around the successor to the super-deduction allowance.
Responding to UK chancellor Jeremy Hunt’s spring budget, CPA chief executive Kevin Minton said, “Steps to boost business investment and maintain the freeze on fuel duty are welcome. However, we are seeking clarification from the treasury on the details around the successor to the super-deduction allowance (SDA), and whether the plant hire sector can qualify for this new scheme.
“Following the announcements on the delay to HS2 last week, a budget for growth needs firm commitments from government on future infrastructure spending and projects. Proposals in the budget to create Great British Nuclear, while welcome, do not provide immediate comfort to the construction sector, given these plans are medium to long-term goals. However, we hope plans to provide the Carbon Capture Usage and Storage scheme with its £20 billion fund, could provide some level of confidence for infrastructure planning.
“The construction sector may welcome the chancellor’s plans to attract over 50s to the workplace to help address the skills shortfall the industry is facing. However, this new scheme must complement existing initiatives already in place.”
Suneeta Johal, chief executive of the Construction Equipment Association (CEA), said there were some ‘positive’ announcements that will boost productivity within the construction sector.
She said, “Hunt claimed that this budget was for ‘long-term, sustainable, healthy growth’ and said the government would deliver 12 new investment zones, which he labelled ’12 potential Canary Wharfs’. The CEA welcomes this announcement and the £80 billion funding to support a range of interventions including skills, infrastructure, tax relief, and business rates retention, particularly after the delays to HS2 announced last week.”
The CEA also welcomed the new £9 billion policy of ‘full capital expensing’ for the next three years, the fuel duty freeze, and the extension of the climate change agreement scheme.
With the end of the super deduction this month, Suneeta Johal said the CEA hopes to see the chancellor follow through on his aim to make it permanent to encourage investment and provide long-term stability.
