{"id":510375,"date":"2024-12-02T12:39:42","date_gmt":"2024-12-02T12:39:42","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=510375"},"modified":"2024-12-23T15:16:55","modified_gmt":"2024-12-23T15:16:55","slug":"plant-hire-association-seeks-solutions-to-triple-threat","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/supply-chain\/plant-hire-association-seeks-solutions-to-triple-threat-02-12-2024\/","title":{"rendered":"Plant-hire association seeks solutions to triple threat"},"content":{"rendered":"

Plant hire firms are facing a triple threat of tax pressures, road regulations and mental health concerns, an industry trade body leader has told Construction News<\/em>.<\/p>\n

Construction Plant-hire Association (CPA) chief executive Steven Mulholland reiterated opposition to changes in inheritance tax thresholds<\/a>\u00a0announced by the government in its October budget. \u00a0<\/strong><\/p>\n

He said: \u201cIt\u2019s certainly more difficult now for our 1,950 members \u2013 and 85 per cent of them are family-run businesses.<\/p>\n

\u201cWe\u2019ve got to deal with business property relief, pensions and fund the living wage. We\u2019re not against the living wage; it\u2019s a commitment but it has to be funded. On top of that, we\u2019ve been hit by NI [employers\u2019 National Insurance Contribution (NIC)] increases. It\u2019s very, very narrow-minded.\u201d<\/p>\n

Mulholland added that the inheritance tax and NIC issues feed into the broader mental health problems in construction, especially among small and medium-sized firms that comprise the bulk of the CPA\u2019s membership.<\/p>\n

\u201cI don\u2019t think too many people think about the mental health of SME contractors. You are perceived as being bulletproof and unaffected by shouldering the burden of running a company,\u201d he said.<\/p>\n

\u201cWe\u2019ve come a long way as an industry, but we\u2019ve still got a long way to go. Sometimes, the intervention is when someone just takes time out to listen to you. If you create a culture where people are trying to do the right thing, that makes a difference.\u201d<\/p>\n

In May, a survey by insurance provider Simply Business found that 51 per cent of SME owners across all industries had experienced stress, and 30 per cent of respondents reported high levels of anxiety. In its conference last month, the CPA included a session on practical steps that companies can take to help their workforces, including better communication from management.<\/p>\n

Another critical issue for CPA members has been how the police are enforcing the legislation on abnormal loads<\/a> movements.<\/p>\n

Forces each take their own approach, which restricts when firms can operate. After years of campaigning, police chiefs have now promised new guidance will go out to forces \u2013 and they will all use it in the same way.<\/p>\n

But Mulholland also recognised years of police cuts, including to traffic officer numbers. According to the AA, there are now 4,215 traffic officers in England and Wales, compared with 5,237 in 2016.<\/p>\n

\u201cThe police don\u2019t have the staff to cover it [road movements across the UK] in the early hours of the morning,\u201d he said.<\/p>\n

Aside from the three problem issues, Mulholland does not want construction firms to lose sight of a much bigger challenge: meeting net zero emissions targets.<\/p>\n

\u201cWe, as a sector, rely very heavily on fossil fuels. Everyone has to face the reality that the 2030 targets for non-road [mobile] machinery (NRMM) are not going to happen,\u201d he said.<\/p>\n

By 2030, NRMM with internal combustion power must meet the EU Stage V standard for emissions. The government is also considering reinstating the 2030 ban on the sale of new vehicles with internal combustion engines.<\/p>\n

Mulholland said: \u201cFor every bit of equipment [weighing] over 3.5 tonnes, that infrastructure [electric charging points] isn\u2019t there. Electric machines just don\u2019t generate the power needed on a shift. There\u2019s no residual value in electric equipment, mainly due to battery disposal. People are shying away from buying electric equipment at the moment.\u201d<\/p>\n

The latest generation of traditional plant being used by his members is still effective, he believes. \u201cA Stage 5 diesel, which complies with the EU\u2019s emissions standard, is fantastic. The emissions are very, very clean,\u201d he said.<\/p>\n

The alternative is hydrogen but manufacturers are still developing the technology.<\/p>\n

He explains: \u201cJCB are testing a hydrogen [internal combustion] engine at the moment. But we\u2019re nowhere close to having that fuel portable. We need to get it into mobile tankers that can get it onto sites. But that is going to take time.<\/p>\n

\u201cThe government can help on this. Without money, we can\u2019t get the incentives in to change. We\u2019re not moving quickly enough.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Plant hire firms are facing a triple threat of tax pressures, road regulations and mental health concerns, an industry trade body leader has told Construction News. Construction Plant-hire Association (CPA) chief executive Steven Mulholland reiterated opposition to changes in inheritance tax thresholds\u00a0announced by the government in its October budget. \u00a0 He said: \u201cIt\u2019s certainly more …<\/p>\n","protected":false},"author":149995,"featured_media":501441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[570,559,577,57171],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n