CPA Urges the Government to Address the Contradictions in its Budget and its Aims

The Construction Plant-hire Association (CPA) has responded to an article written by Prime Minister Keir Starmer and published in the Financial Times. The article, entitled ‘Reform is needed to make Britain a great place to do business’, was published days after Chancellor Rachel Reeves announced the Budget.

Steve Mulholland, Chief Executive Officer of the CPA, has written to the Letters Editor of the Financial Times urging the government to address the contradiction in its Budget and its aims. 

The letter states: ‘The Prime Minister spoke of providing stability and certainty and setting a path to sustainable growth. That is all well and good, but actions speak louder than words. As the CEO of the Construction Plant-hire Association (CPA), our 1,900 members are the backbone of the construction industry, worth some £14bn to the economy, supporting over 190,000 jobs. Our members have a key role to play in building new homes, the infrastructure that they need, the schools and hospitals of the future not to mention renewable energy infrastructure that is going to be required. This can only come from renewed investment in new equipment, technologies, innovations, and people. 

‘The Budget failed us on each of these levels. Our members remain excluded from being able to take advantage of the Full Expensing Allowance, the rise in NI is a tax on jobs and will deter companies taking on more people, will slow increases in wages at a time when we need to increase the construction skills base. The proposed changes to Business Property Relief as part of wider Inheritance Tax changes, will have a massive and detrimental impact on SMEs (20% of SMEs work in construction) and family run businesses - the backbone of construction plant-hire, and the wider business communities throughout the UK.’

Steve Mulholland, CPA Chief Executive Officer added: “We believe that the Budget is one of the most anti-entrepreneurial presented in the last forty years. Mr Starmer’s article mentions £63bn-worth of private investment into the British economy, but this excluded some of the companies who could potentially have added significantly to that number.”

The CPA is the largest trade association for the plant-hire sector in the UK, representing over 1,900 companies responsible for 85% of the construction plant used nationally. The Association has recently carried out the first fully comprehensive study of the UK’s plant-hire sector in conjunction with Oxford Economics and will be unveiling the findings of this report at the CPA Conference being hosted at the Heart of England Conference and Events Centre near Coventry on Thursday 7th November 2024.

The report makes a compelling read for those employed in the construction sector, and also for policymakers and stakeholders. It also helps put into perspective the breadth and scope of the sector and why it remains a key destination for highly skilled jobs and roles. Key findings from the study are that the construction plant-hire sector contributes £14 billion and 191,500 jobs to the UK economy.

The letter addressed to the Financial Times Letters Editor can be downloaded below.