CPA Urges the Treasury to Address Full Expensing and Key Concerns Ahead of Budget 2024

Ahead of the Spring Budget taking place on 6th March 2024, the Construction Plant-hire Association (CPA) has written to Chancellor Jeremy Hunt to urge the Treasury to work with the construction plant-hire sector to address the areas of greatest concern to the industry.

The CPA is the largest trade association for the plant-hire sector in the UK, representing circa 1,900 companies who are responsible for 85% of the construction plant used in the UK. In the letter to Mr Hunt, the CPA presses the Treasury to consider four key areas ahead of the Spring Budget:

  • Commit to extending the now permanent Full Expensing Allowance, to every aspect of the construction plant-hire industry. 
  • Extend the 2022 cut in fuel duty for two years, given increased global uncertainty due to ongoing conflict in the Middle East and the war in Ukraine. 
  • Temporarily reintroduce the rebate for HVO to the construction industry for at least the next two years.
  • Explore the feasibility of a trial scrappage scheme for NRMM (Non-Road Mobile Machinery) operators operating in Freeport zones, with a view to widening the scheme on a national basis.

CPA President Brian Jones said: “The Spring Budget provides the ideal opportunity for the Chancellor to provide clear leadership and engagement with our industry. Since the last Budget, the CPA has worked closely with the Treasury and the HMRC to explore ways to extend the Full Expensing Allowance to the plant-hire industry. Whilst these meetings have been constructive, our members still remain unable to apply for the allowance and we hope this will be addressed, as well as other areas of key concern, such as an extension of a cut in fuel duty, rebates for HVO and a trial scrappage scheme for NRMM (Non-Road Mobile Machinery) operators.

“Since the Autumn Statement in November last year, the wider backdrop of continued economic uncertainty, and the cancellation of large infrastructure projects such as Phase 2 of HS2, CPA members have continued to demonstrate their professionalism and resilience in delivering for the wider construction industry. The plant-hire industry continues to work for its clients, adding value and building the houses, workplaces, schools, hospitals and infrastructure of a modern, dynamic economy.”