Nick Ground, Director of the CEA (Construction Equipment Association) response to the spring budget
In what was inevitably a challenging budget announcement during an election period, there’s some potential positive news for construction equipment manufacturers and users.
After continued representations from the industry, the Chancellor undertook to bring forward changes to the full expensing rules to bring leased equipment into the scheme. Whilst in an ideal world “leasing” may also cover equipment bought for rental purposes, the published supporting information is unclear regarding the timing and detailed content of the necessary legislation.
CEA Director, Nick Ground, commented, “It is too early to tell if this is going to be of help to construction equipment purchasers, but it will benefit some of our members who lease equipment for production purposes. The danger is that the promised legislation may remain as a promise as the general election looms.
What can be welcomed is the fuel duty freeze after the unwelcome extra costs associated with the banning of rebated red diesel for construction purposes in 2022.
The much-trailed reduction in employees’ national insurance will be a boost for working families’ household budgets and may reduce some of the pressure on employers for wage increases. Employer’s national insurance contributions remain untouched and are still a significant tax on employment.”
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