Chancellor Rachel Reeves’ Autumn Budget 2024 has sent waves through the UK construction industry with cost hikes affecting businesses of all sizes. As the government aims to fill a £22 billion financial gap, Reeves announced several tax and wage increases that construction professionals worry will significantly impact the sector’s ability to operate and grow. While the intention is to foster economic stability, these changes raise concerns about whether firms can continue delivering projects at a time when housing and infrastructure are already in high demand.

Reeves’ Autumn Budget 2024 Overview
In her budget statement, Reeves outlined several measures intended to increase government revenue by £40 billion, including raising the employer National Insurance contribution (NIC) rate from 13.8% to 15% and lowering the employer threshold to £5,000. Capital gains tax rates will also increase, and the national minimum wage will rise to £12.21 per hour, adding significant costs to employers. These changes take effect in April 2025 and aim to provide economic resilience by increasing the government’s revenue; however, the construction industry sees this as a potential barrier to its growth and operational stability.
Impacts on the Construction Industry
For an industry already facing steep costs and recruitment challenges, the Autumn Budget 2024 intensifies financial strain. The hike in NICs and minimum wage will lead to higher staffing expenses, impacting cash flow and profit margins, particularly for small and medium-sized enterprises. The increase in capital gains tax has also raised concerns among contractors looking to sell or retire. Leaders in the industry, including the National Federation of Builders and other trade bodies, warn that these changes might stifle growth, reduce job opportunities, and limit firms’ ability to train skilled workers – all of which are vital to meeting the government’s pledge of 1.5 million new homes by 2029.
The equipment hire sector is also notably affected. The chancellor did not extend full-expensing tax breaks for hired machinery, which remains a key issue for companies needing to invest in plant and machinery to keep up with evolving project requirements. Without such support, firms reliant on leased equipment face barriers to investing in upgrades essential for efficient and eco-friendly construction.
H. E. Services’ Role and Commitment
At H. E. Services, we understand the challenges these cost increases present for construction companies. As a leading provider of plant hire services across the UK, our focus is on helping our clients navigate rising expenses with reliable, high-quality plant hire options that meet their project needs without compromising quality. By prioritising affordability, equipment reliability, and exceptional service, we aim to help our clients maintain productivity and resilience, supporting the construction sector as it tackles these challenges head-on. Together, we are committed to building a robust future for UK construction.
Give us a call on: 0208 804 2000 or email us for a quote.
For more special offers and construction news, don’t forget to follow us on social media:
Facebook – https://www.facebook.com/planthireHE/?locale=en_GB
LinkedIn – https://www.linkedin.com/company/h-e–services-plant-hire-ltd/
Instagram – https://www.instagram.com/planthirehe/
TikTok – https://www.tiktok.com/@heservicesplanthireltd
X – https://twitter.com/planthireHE
All information correct as of: 31st October 2024