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CEA responds to government energy support announcement

Following coverage on BBC News this morning, the UK Secretary of State for Business and Trade, Peter Kyle, outlined further support for energy-intensive industries in response to the Chancellor, Rachel Reeves, speaking at an IMF meeting in Washington. While the direction of travel is positive, the announcement does little to ease the immediate pressure facing businesses across the construction equipment supply chain. The delayed implementation raises real concerns for firms already managing sustained high energy costs and tight margins.

Viki Bell, CEO of the CEA (Construction Equipment Association), said: “The expansion of support to energy-intensive industries is a step in the right direction and reflects the pressures many manufacturers are facing."

"However, with the scheme not coming into operation until 2027, businesses are effectively being asked to carry high energy costs for another year before meaningful relief arrives. For many, that is a significant challenge at a time when margins are already under pressure."

"Energy costs are not just an issue for a small number of qualifying firms. They are being felt right across the construction equipment supply chain, from manufacturers through to hire companies and SMEs, many of whom fall outside the scope of this support."

"Without more immediate measures, there is a real risk that these pressures will continue to influence investment decisions, pricing and competitiveness in the near term. A broader and more timely approach will be needed to support the full industry.”

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