CONSTRUCTION Plant-hire Association (CPA) CEO Steve Mulholland has lamented the failure of chancellor Rachel Reeves’ spring statement to address the challenges facing the industry arising from the National Insurance hike and proposed reforms to inheritance tax.
He said these changes ‘threaten the existence’ of thousands of family-owned businesses in the construction sector.
“Next month’s National Insurance hike will make it more difficult for family-run businesses to recruit and tackle the skills crisis, while changes to inheritance tax could force many to sell up just to cover the tax bill,” Steve Mulholland said. “If Labour truly wants to drive growth it must urgently reconsider its approach and assess the real-world impact of these changes.
“Family firms are the backbone of the construction industry, so if the government wants homes built and infrastructure projects delivered on time, it has to support those independent, family-run companies doing the actual work.”
Viki Bell, director of operations at the Construction Equipment Association (CEA), said the UK Government’s ambition to fix the planning system and unlock housebuilding is ‘positive in principle’, but added that much of what was discussed in the spring statement has already been announced, and there was very little new information for the construction equipment sector.
“Our members need practical support – clear timelines, a stable pipeline of work, and a commitment to UK manufacturing,” Viki Bell stated. “Construction equipment is key to these deliverables, as is the battle against equipment theft, which is a clear strategic threat to these ambitious growth plans.
“The good news was no further tax rises – but the sting for businesses came earlier this year, with increased National Insurance. The real test will be the autumn budget.”
