The Mineral Products Association (MPA) has set out key priorities to protect the industry, and the wider UK economy, from the impact of events in the Middle East.

MPA has reiterated what the Government needs to do to support the sector – which was struggling even before the Gulf conflict – with high industrial energy prices and sluggish market conditions, as well as calling for targeted, specific measures in response to volatility in energy markets.

In a letter to Construction Minister Chris McDonald, the MPA has called for a specific policy change in response to immediate crisis – to delay the removal of fuel duty discount to avoid additional cost pressures on industry.

The letter also restates policy changes for which MPA has been advocating for some time that have now become even more important as markets react:

• Support housing demand in the form of financial support for new home buyers.

• Rapid public funding for infrastructure. Any projects in the infrastructure pipeline that can be accelerated should be. Infrastructure and capital budgets must be protected.

• Deliver a robust Carbon Border Adjustment Mechanism that supports energy intensive industries to compete on a level playing field. The current design, and waiting until Q4 to announce rates, is undermining confidence.

• Address Industrial Energy costs for our sector by expanding access to the Energy Intensive Industries compensation scheme.

• Incentivise private construction spending through a super-deduction. A super-deduction to bring forward investment and would be a significant catalyst to help to kickstart growth.

• Targeted support to help reduce costs for the construction sector. Incentives to initiate projects now would help, such as a super-deduction, a reduction in employer NICS or extending the exemption from VAT more widely.

Chris Leese, Executive Chair of the MPA, said:

“Our sector has already endured a prolonged market downturn over the past four years, impacting jobs, investment and the resilience of this essential foundation industry. Obviously the events in the Middle East are not going to help.

“Looking to solutions, our policy asks from before the latest conflict are key to get the economy going; now we need to add measures to tackle the imminent spike in energy costs. We need to see a delay to the removal of the cut in fuel duty, and support for energy-intensive industries including cement.

“During a period of heightened global uncertainty, it is essential that Government provides clear and stable economic policy signals to help businesses plan investment and keep housing and infrastructure delivery on track.

“Our members recognise that the Government faces many challenges at present. As an industry we stand ready to offer support. Our policy suggestions are put forward in that spirit, in an effort to help kickstart construction despite the current crisis.”

ENDS.

About the Mineral Products Association:

The Mineral Products Association (MPA) is the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. MPA is the sectoral voice for mineral products, covering 100% of UK cement and lime production, 90% of GB aggregates production, 95% of asphalt and over 60% of ready-mixed concrete and precast concrete production. In 2023, the industry supplied £18.4 billion worth of materials and services to the Economy, directly generating £6.7 billion in Gross Value Added (GVA). It is the largest supplier to the construction industry, which generated £141.5 billion in GVA in 2023.

For media enquiries, contact Robert McIlveen at: Robert.McIlveen@mineralproducts.org