The UK’s Mineral Products Association (MPA) has urged the government to delay the planned removal of the fuel duty discount and introduce targeted support measures for energy-intensive industries, including cement, in response to rising market uncertainty linked to tensions in the Middle East.
In a letter to Construction Minister Chris McDonald, the MPA warned that the sector is already facing weak demand, high industrial energy costs and sustained market downturn conditions, with further volatility expected to increase cost pressures.
The association called for immediate action to maintain the fuel duty cut, alongside broader policy measures to support the construction supply chain. These include expanded access to the Energy Intensive Industries compensation scheme, the introduction of an effective Carbon Border Adjustment Mechanism (CBAM), and measures to stimulate demand through housing support and accelerated infrastructure spending.
MPA also reiterated the need for incentives to boost private construction activity, including potential tax measures to encourage investment.
The association said that without additional policy support, rising energy and transport costs could further impact cement and wider mineral products producers, with implications for construction activity and infrastructure delivery in the UK.
