Hire Association Europe & Event Hire Association (HAE EHA) had hoped that the Chancellor would announce the extension of Full Expensing for capital investment in the Autumn Budget 2024. This would allow equipment hire and rental businesses to make use of this incentive to invest in new assets, particularly greener technology.
Mark Bradshaw
While the Chancellor did not announce implementation of this measure today, we note from the Corporate Tax Roadmap (also published today) that extending Full Expensing remains under consideration and that further discussions are likely.
HAE EHA has been part of a Treasury working group to navigate the issues and opportunities from extending Full Expensing. We will continue to play our part in making the case as the hire sector is integral to construction, events, facilities management and the energy network.
Paul Gaze
Paul Gaze, HAE EHA’s CEO, said this afternoon: “We are relieved that extending Full Expensing for hired assets remains under active consideration, albeit disappointed that members cannot make use of this incentive from today and start planning their investments in new equipment.
“As a capital intensive sector, which epitomises the circular economy, extending Full Expensing would support the transition to Net Zero and enable fresh investment in newer, more efficient equipment. Delivery of the capital projects announced today will depend on the hire sector to provide the assets required to build, repair and maintain.”
Other measures announced by the Chancellor will have a mix of positive and negative impacts for the hire sector.
- Employment related costs will rise for all businesses, with increases to the National Minimum Wage and Employer NICS.
- Maintaining the Fuel Duty freeze is positive as we are a logistics based sector.
- Funds aimed at skills and workability are important to our members, as they have an ageing workforce and need to attract new people into the sector from a range of backgrounds.
- Additional funding for house building, infrastructure and energy networks is welcome news as the hire sector is a key enabler of this activity.
- Extra capital to repair and expand healthcare and education buildings is also important and it is worth noting that hire businesses will be fundamental to delivering these projects
- Resources to combat shop theft resonates with our members who face increased levels of equipment theft and fraud. Combining initiatives could help tackle organised and repeat acquisitive crime.
- Changes to business rates should also benefit events businesses who are part of the hospitality and leisure supply chain.