Make UK comment on Budget Statement
Published: 07 March, 2024
Commenting on the Budget Statement, Stephen Phipson, Chief Executive of Make UK, said: “Industry will welcome this statement which builds on a number of other key announcements in recent months. The Chancellor clearly sees manufacturing as a key sector in the economy of the future and is slowly, but surely, putting in place the building blocks of an industrial strategy.
“The extension of full expensing to leased assets will benefit smaller companies in particular and, we would urge draft legislation to be brought forward as soon as possible so that this measure can be made permanent at the earliest opportunity.”
On the consultation on leasing, Fhaheen Khan, Senior Economist at Make UK, said: “Making full expensing permanent was one of the single most supportive changes to the treatment of capital expenditure for UK businesses in the last decade. Manufacturers are one of the biggest users of capital allowances and, widening access to leased assets highlights the Government’s commitment to explore new ways to ensure the UK is an attractive location to invest.
“Extending full expensing to leased assets will especially support smaller manufacturers while, further down the line, the Government should explore whether it can be expanded even further to support sustainability goals by covering refurbished, second-hand technologies.”
On the extension of the Recovery Loan scheme, Faye Skelton, Head of Policy at Make UK, said: “By extending the scheme, the Chancellor has extended a welcome olive branch to small businesses in the UK in an act that recognises their strategic importance to the economy.
Smaller manufacturing businesses account for the vast majority of the UK manufacturing base and this will provide them with a vital safety net to ensure their long-term viability.
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