Autumn Statement reaction
22 November 2023
Although chancellor Jeremy Hunt announced in his Autumn Statement that the full expensing tax break for companies investing in new machinery and equipment from profits would become permanent, the CPA was left frustrated.
Stu McInroy, the association’s Chief Executive, said: “Today’s decision to exclude elements of the construction plant-hire industry from the decision to make the full expensing allowance permanent is extremely disappointing and leaves CPA members unable to take full advantage of the allowance.
“CPA members are pivotal to UK business investment and productivity. If the government is serious in its desire for the economy to grow, plant-hire companies must be afforded the opportunity to take advantage of the changes to the full expensing allowance without restriction.
“We urge the government to bring forward its technical consultation on full expensing and engage with our industry as soon as possible. The CPA has to date been a leading member of the Treasury’s working group in this area and we are keen to ensure our members are able to benefit fully from the government’s growth agenda,” he added.
Giving her reaction to other announcements in the statement, Suneeta Johal, CEO of the Construction Equipment Association (CEA) said that “the absence of discussion on fuel duty is particularly disappointing. In an industry where fuel costs substantially impact operations, this oversight is a missed opportunity.
“We welcome the chancellor's initiative to accelerate planning applications, as it could significantly benefit the construction sector by enabling faster project starts and potentially reducing uncertainties,” she continued. “However, it's crucial to recognise that while these changes present opportunities, their overall impact on the construction sector will depend on a variety of factors.
“These include broader economic conditions, the availability of funding, labour and material resources, and environmental considerations. The effectiveness of these reforms in truly shortening application times and their actual implementation will be critical in determining their tangible impact on our industry.”
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