Aggregate firms lobby for extension of super-deduction
The Mineral Products Association (MPA) has called on chancellor Jeremy Hunt to retain the super-deduction on new plant and machinery.
The MPAs want tax incentives for investments in machineryThe MPA has submitted its police recommendations to the chancellor ahead of his spring budget, set for 15th March. It wants the chancellor to reconsider plans for the increase in corporation tax that is coming in April. And they want him to retain the super-deduction tax relief scheme for new plant and machinery, which is set to end on 31st March 2023.
That, says the MPA, would help producers of construction materials and industrial minerals to invest more in practical solutions to help the UK to deliver its decarbonisation goals, as would clear proposals on a Carbon Border Adjustment Mechanism and a removal of the cost of the Carbon Price Support from energy intensive industries’ energy bills.
The MPA submission calls for measures to encourage growth, including a medium-term freeze to the aggregateslevy and temporary relief for sectors that had their red diesel entitlement removed but do not yet have access to machinery capable of using alternatives. Proposals have also been put forward to tackle inflation and support the delivery of major infrastructure projects through a more strategic approach to minerals planning.
MPA chief executive Jon Prichard said: “The anticipated changes to the super-deduction and the rate of corporation tax will move Britain from an optimistic fifth to a dismal 30th in the international tax competitiveness index. This represents a huge barrier to the investment needed for new housing and infrastructure, alongside our transition to net zero, and addressing these issues is a top priority for MPA members.”
Director of public affairs Robert McIlveen added: “Producers of mineral products are clear that there are a range of challenges that the chancellor could tackle in his Budget, all of which would help support government’s goals of investment and growth. The mineral products sector is keen to deliver for the UK economy, and a better tax and policy framework would help secure the investment needed for the UK sector.”