Industry bodies welcome Budget measures
Construction Products Association and Asphalt Industry Alliance pleased with Budget announcements
THE Construction Products Association has welcomed the Chancellor’s 2015 Summer Budget Statement, which, it said, backed British manufacturers and industry.
Dr Diana Montgomery, chief executive of the Association, said: ‘We were pleased by plans – that were in line with our recommendations – for the permanent setting of the annual investment allowance of £200,000 from January 2016. This will offer industry confidence in the long term to invest in new and innovative plant, machinery and equipment, which will impact positively on productivity.
‘We are encouraged by the announcement that the Government will be bold in the delivery of infrastructure, especially in terms of roads. The Chancellor’s commitment to the £15 billion road spending plan and his recognition of a long-term road investment programme offers certainty to industry.
‘Finally, we are pleased to hear that the main rate of Corporation Tax, which had already been cut from 28% to 20% in 2010, will now fall further, from 20% to 19% in 2017, and then to 18% in 2020.’
The Asphalt Industry Alliance (AIA) also welcomed the Chancellor’s Budget announcement, which, it said, would provide the industry with growing confidence to invest to meet increasing demand.
‘We have long advocated the importance of security of funding, and re-establishing the link between Vehicle Excise Duty (VED) and the new National Roads Fund is a positive step,’ said AIA chairman Alan Mackenzie (pictured).
However, Mr Mackenzie cautioned that with money raised from changes to VED from 2021 being directed into the strategic road network (SRN), there was nothing for the local road network to cheer about.
‘Local roads represent 98% of the network and carry two thirds of traffic, yet receive a fraction of the funding allocated to the SRN,’ he said.
‘Figures show that over the next six years every mile of the SRN will receive £1.4 million of funding while our local roads will see just £31,000 per mile, and the Chancellor’s Budget does nothing to change this.
‘This funding imbalance needs to be addressed now if the state of all our roads is to be improved.’
