CPA Bulletin

www.cpa.uk.net CPA Bulletin > August 2023 19 POLICY: 2 The pandemic provided the Boris Johnson government with an enhanced industrial policy of sorts. Build Back Better, published in March 2021, was the government’s plan to kick start the post pandemic economic recovery, with the focus on renewed investment in infrastructure, skills, and innovation. Under the current Rishi Sunak led administration, industrial policy has again taken a back seat, with the emphasis on reducing inflation, dealing with the cost-of-living crisis and the continued fall out from our departure from the EU. Yet paradoxically, most major Western economies, and a significant number in Asia, have never given up on the idea of having an industrial policy. The US recently introduced the Inflation Reduction Act and the Chips Act. The EU has followed this approach with greater investment in chip manufacturing and the Green Deal Industrial Plan. While Rishi Sunak may wish to mirror the Margaret Thatcher led approach of the free-market philosophy, the UK lives in very different times to the late 1970s and early 1980s. While some economists and academics might have been moving towards a more active approach to industrial policy, the UK economy is vastly different from 40 years ago - albeit with one major difference - which brings us back to decarbonisation. If the UK is to meet its carbon reduction targets and achieve net zero, the onus must be on government and the private sector taking a far more active approach to industrial policy and intervention. The plant-hire sector already knows its role and responsibilities in terms of investing in new equipment which either runs on battery, electric tethered technology, or ultimately, hydrogen. But presently, the process remains complicated, with government support and focus, limited and inconsistent. This is best exemplified with the debates and arguments around the removal of the rebate, and right to use, red diesel. The original aim of the policy according to the Treasury, was to incentivise the uptake and development of alternative fuelled NRMM technology, alongside reducing emissions. The problem is, switching to white diesel from red did nothing to improve air quality and reduced the scope for plant-hire companies to invest in new technology. The same lack of focus surrounds the development of the Low Carbon Fuels Strategy. The industry recognises that eventually, construction plant will move away fromdiesel powered engines. But this process will take time - something government has yet to fully acknowledge and understand. Targets might focus minds and act as a timeline, but realism is needed as well. It is one thing talking about the climate emergency, however if themain policy towards low carbon fuels is delayed, this can lead to confusion, thus undermining the wider message. The construction sector will continue to do its best, with market forces driving development, innovation, and eventually, cheaper alternatives to what is on offer presently. However, this is only possible if the government provides consistency in its messaging and sets out a clear path for an industrial policy that moves beyond the electoral cycle. Plant-hire companies are being asked to look ahead and focus on how the sector will change in the next 20 years. As we have seen in recent years, governments and prime ministers come and go - the plant-hire sector is here to stay. The least policymakers can do is meet their responsibilities and work with our industry in ensuring it meets its climate obligations, while remaining amongst the most progressive and professional in the world. GEDA Construction Hoists – PROFESSIONAL HOIST SOLUTIONS MADE IN GERMANY GEDA Solarlift Germany www.geda.de/en Your official sales partner in the UK: Mace Industries Limitied Units 1-3 Macadam Road Earlstrees Industrial Estate Corby Northamptionshire NN17 4JN www.maceindustries.co.uk +44 1536 206600 geda@maceindustries.co.uk