Fuel duty changes hit the construction industry.
In a government effort to reduce emissions and reach new air quality targets, April 1st made rebated red diesel no longer available to the construction industry. This change of fuel duty will have an immediate financial impact and increase the price of fuel for many firms by 50%, around 43p per litre.
Those in the industry may also incur one-off costs to remove or run-down red diesel, source fuel alternatives or purchase additional tanks, vehicles, or equipment. Contractors operating in sectors that still allow red diesel will now also need two sets of storage and plant/equipment unless completely flushing tanks and supply lines between uses. This will have significant impact on cash flow for many businesses and is why now is the time to consider how you can secure a healthy financial position.
The industry was already facing unprecedented cost pressure following a raft of price increases on core materials. The Government’s recent spring statement also left the industry feeling overlooked despite many direct appeals signed by federations and associations from the industry. Unfortunately, with fuel prices, wage bills and energy costs already sky high, the fuel duty change is an added pressure when times are already extremely tough.
Now may be the time to consider the financial implications and whether Portman can help with a business loan to supplement cashflow or asset finance for new vehicles or storage tanks.
Portman have a long history securing finance for commercial vehicles, machinery, and equipment in the construction industry. Our experts have arranged nearly £1billion in bespoke funding for over 10,000 companies in the last 15 years. We also can provide the cash boost you need to cover increasing costs or staged payments to keep your business cash rich amongst economic uncertainty. As a lender and a broker, we may be able to help where others might not.