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Summer 2021 47 A s the UKNations emerge from lockdown and government finds the bandwidth for non-Covid policy making, it is perhaps useful to scope several areas which impact on the hire sector. Our key message throughout remains that hire and rental is an enabling sector with strong dependencies from construction, events, infrastructure, utilities, civil contingencies and other economic activity. With the UK hosting the global COP26 event in November, the government has been emphasising the plans for decarbonisation and this has been the rationale for several policy decisions. RED DIESEL The most notable affecting the hire sector is the removal of red diesel from construction use from April 2022. While many are sceptical about whether this is the true reasoning behind removing this rebated fuel (and providing a consequent saving to the Treasury), there is no doubt that businesses are navigating a non- carbon future. The emphasis will be on battery technology and possibly hydrogen, but HVO and other alternative fuels will provide an important bridge to whatever power options emerge in the coming years. HAE is forming a newNet Zero Panel to assist the work in this area and provide access to expertise within member companies. HAE is working with other trade associations to ensure that the HMRC guidance on red diesel addresses the practical concerns members have. In the longer term, HAE is part of an alliance seeking reform of the system of capital allowances which does not apply to the hire and rental sector. This was brought into sharp focus by the incorrect assumption by officials that the super-deduction, announced in Budget 2021, would apply to our sector. At present, the government is not providing a joined-up approach to the challenge of powering an extensive inventory without red diesel and lacks the offer of any financial support for the transition to low and zero carbon. ACE POLICING TEAM HAE is pleased the see the creation of a new national policing team – ACE – to fulfil the role previously undertaken by PANIU. At a time of growing risk to the hire sector from both theft and fraud, a national policing response is vital and the emerging partnership between trade bodies, our members and ACE will make a crucial difference in tackling what is increasingly organised and sophisticated criminal activity. HAE has also been working with a backbench MP who is raising the profile of tool theft in Parliament. CITB LEVY Over the past few months, HAE have sent out a survey to gather views on the CITB Levy proposals for 2022-25. The CITB proposals have been well publicised by HAE and in the trade press. The outcome of this Consensus exercise will inform the future of CITB and its strategic priorities, but there is no doubt that there has had to be a serious rethink due to the financial and operational impact of the Pandemic. HAE EHA continues to provide updates on government announcements (at UK and Nations level) about Covid restrictions and key information to assist businesses. This work continues as the lockdown restrictions are eased and more people return from remote working. <<