In a reaction to Rachel Reeves’ pre-budget speech yesterday, the Construction Equipment Association (CEA) has urged the chancellor to take a “clear, long-term approach”
Yesterday, Rachel Reeves made a speech ahead of the construction Autumn Budget.
The CEA’s chief executive has written a response to the speech, widely considered to be ‘softening up’ the country for the upcoming budget.
The Autumn Budget is expected to raise taxes, including for construction
In her speech yesterday, the chancellor warned that “necessary choices” will be made in the budget. The CEA has highlighted that this has caused concern in the sector regarding tax increases on growth and investment.
Confidence is at a crisis point, with housebuilding struggling to recover to pre-2022 levels, and worries that changes to taxes could increase pressure on borrowing or affordability, thereby delaying new projects and reducing demand.
It could also affect investment in manufacturers or suppliers of construction machinery, in addition to already-present energy and material costs, as well as ongoing costs caused by Brexit.
Viki Bell, chief executive of the Construction Equipment Association, said: “Construction is a barometer for the wider economy, and stability in our sector means stability for the country. We understand the pressures facing the Chancellor, but growth and investment must remain at the heart of this Budget. Our members need the confidence to invest in skills, innovation, and cleaner technologies — not uncertainty that slows progress. A clear, long-term approach will give British manufacturing the platform it needs to thrive.”
Construction leaders offer their budget wishes
Writing for PBC Today in October, Eve Livett, CEO OF the Masonry Association of Great Britain, and Tony Higson, CEO and managing director at Grayson, shared what they would like to see in the upcoming construction Autumn Budget.
Eve wrote: “One of the biggest frustrations we face is the way the current VAT system actively discourages essential work like retrofit and energy efficiency improvements. That has to change. If we’re serious about tackling energy use and carbon emissions, we should be encouraging people to improve the buildings we already have, not making it more expensive. A simple VAT relief on retrofit projects would be a huge step forward, boosting work for small builders, improving housing stock and helping households cut their bills.”
Tony wrote: “My biggest concern right now is the 1.5m homes promise. The whole industry is sitting still, not making any gains or moves, and it feels like we’re quietly edging away from that original commitment. The government’s latest 12 new towns plan is being presented as a bold new solution, but when you look at the numbers, it simply doesn’t stack up.
“Without urgent intervention, we’re looking at another decade of idle builders, frustrated buyers and broken promises. Mortgages remain out of reach for many first-time buyers, and existing homeowners are hesitant to move because of high taxes and speculation about new levies. Landlords are leaving the market, further squeezing supply. Estate agents and developers across the country are all saying the same thing: confidence has disappeared.”
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