UK budget signals ‘death of plant hire in Scotland’

The Scottish Plant Owners Association (SPOA) said the recent UK government budget “has signalled the death of the plant hire industry in Scotland”.

The organisation, which represents 350 equipment rental companies in the country, said it feared that the budget will trigger a “catastrophic decline of the plant hire industry” and called for its members to lobby their local MPs.

SPOA highlighted three areas of concern:

Removal of 100% business property relief (BPR) and agricultural property relief (APR)
SPOA said its members are predominantly private companies heavily invested in assets and property, which take them significantly over the £1m allowance for 100% BPR or APR.

“Business owners will not typically have the cash reserves for a one-off inheritance tax event…In order to generate the cash to pay for this tax, SPOA members will likely be forced to sell all or part of their business.”

Higher National Insurance (NI) contributions, lower thresholds, higher minimum wage
“These measures will affect all industries and the SPOA fears that they are unlikely to be reversed due to that additional income boost to the Treasury.”

It added that companies “will need to look for efficiencies in headcount, pay awards and growth plans”.

Double cab pick-ups no longer classed as goods vehicles
SPOA said double cab pick-ups are essential for the plant industry, allowing safe towing of plant machinery and making it easier to access sites on forestry and agricultural land; “This is another unnecessary blow to the industry resulting in higher tax burdens.”

‘Without hyperbole’

John Sibbald, president of the SPOA, said; “it is with dismay and without hyperbole that we fear for the plant hire industry in Scotland.

“The recent Budget was described as one of growth, however, we fear that the economic impact of many of the policies will do the exact opposite in our industry.

“It is our strong belief that it is not possible to grow the economy through such high levels of taxation, soon to come into force as a result of the Autumn Budget.

“We are therefore calling on all of our members to lobby their local MPs to highlight the risk to the plant industry in Scotland which employs over 42,000 people and contributes £7.4bn to the economy.”