The Scottish Plant Owners Association (SPOA) has issued a stark warning about the future of the plant hire industry in Scotland following the recent Autumn Budget announcement. The organisation claims that the new measures will have devastating consequences for their sector.
The trade association’s president John Sibbald argued: “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, so 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.”
The SPOA has criticised the elimination of 100% Business Property Relief and Agricultural Property Relief.
Its members are mainly private, independent firms that are heavily invested in costly assets and real estate, pushing them beyond the £1m limit for 100% BPR or APR.
Because of this ongoing investment to boost growth, business owners often lack the financial reserves needed for a single inheritance tax payment. Consequently, SPOA members might be compelled to part with their entire or a portion of their business to cover this tax.
Initially, this would affect the potential buyers and the value of the business, making it necessary to sell, according to the SPOA. Additionally, it would lead to job cuts as administrative roles would be merged regardless of the buyer.
Some companies might opt to take on more debt to settle the Inheritance Tax, which could hinder future expansion and the business’s stability. Other companies might sell all their assets at auction, resulting in the business’s closure and job losses, as the SPOA’s statement further explained.
It also opposes a rise in employers’ National Insurance contributions, a decrease in the thresholds, and an increase in the minimum wage.
“It is an unfortunate reality of running a business that management will need to look for efficiencies in headcount, pay awards and growth plans in addition to rate increases likely leading to further inflation – the plant industry is no exception to this and the SPOA fears the worst,“ the statement read.
More specifically, the organisation also honed in on double cab pick-ups no longer being classed as goods vehicles.
These vehicles 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,“ the SPOA added.
The organisation is highlighting a survey created by the CBI in reaction to the Autumn Budget and is urging members to fill it out by November 17.
