Trade bodies representing the UK’s plant-hire and construction equipment industries have responded cautiously to Chancellor Rachel Reeves’ Spring Statement, welcoming ambition but warning of mounting economic pressures.
Viki Bell, CEO of the Construction Equipment Association (CEA), described the statement as “clearly designed to justify and vindicate the Government’s economic strategy,” but warned that global instability could quickly undermine forecasts.
She noted that the speech carried “a sense of the unreal about it,” pointing out that projections failed to account for escalating conflict in the Middle East and surging fuel prices. She also cautioned: “If gas and oil prices continue to rise, this will drive inflation, slow growth and likely thwart interest rate cuts.”
Meanwhile, Steve Mulholland, CEO of the CPA (pictured), said the announcement was “a missed opportunity to provide the certainty our sector urgently needs.”
While welcoming Labour’s commitment to delivering 1.5 million new homes, he stressed that plant-hire firms — 96% of which are family-owned — face rising employer National Insurance contributions, wage pressures and tax changes
“If Government is serious about accelerating delivery, it cannot raise the cost of employment and investment at the same time,” Steve said, urging reforms including full expensing for leased plant.
Both associations signalled a willingness to work with Government, but made clear that economic headwinds and policy pressures risk hampering growth ambitions without more targeted support.