THE Construction Equipment Association (CEA) has called for growth and investment to be at the heart of the upcoming Autumn Budget.
The organisation was responding to UK chancellor Rachel Reeves’ warning that ‘necessary choices’ will have to be made — a statement that has prompted concern across the construction equipment sector about the potential impact of tax increases on growth and investment.
The CEA said any rise in personal or business taxation risks slowing construction activity at a time when confidence is already fragile.
For manufacturers and suppliers of construction machinery, higher taxes and cost pressures could make investment decisions more difficult. The CEA added that many firms are already managing rising energy and materials costs, alongside continued post-Brexit barriers affecting logistics and trade. Additional fiscal tightening would ‘further squeeze margins and limit the capacity to invest in research, product development, and workforce growth’.
At the same time, the sector needs reassurance that public infrastructure projects will continue to be prioritised. Investment in transport, housing, schools, and hospitals underpins national productivity and provides demand for plant and equipment. The CEA claimed consistent, long-term commitments from government would give manufacturers and contractors the confidence to plan ahead and invest in ‘cleaner, safer, and more efficient’ machinery.
The CEA said the Autumn Budget also presents an opportunity to reaffirm support for low-carbon technology. The construction equipment industry is already driving innovation in electric, hydrogen, and hybrid machinery, but sustained progress depends on stable energy policy and ‘targeted incentives’ that encourage uptake rather than add cost.
Continued investment in skills development and training initiatives has also been identified by the CEA as key to maintaining capacity and supporting the next generation of talent.
Viki Bell, chief executive of the CEA, said, “Construction is a barometer for the wider economy, and stability in our sector means stability for the country. We understand the pressures facing the chancellor, but growth and investment must remain at the heart of this budget. Our members need the confidence to invest in skills, innovation, and cleaner technologies — not uncertainty that slows progress. A clear, long-term approach will give British manufacturing the platform it needs to thrive.”
