FLA statement on Chancellor’s Growth Plan

Commenting on the Chancellor’s Growth Plan, Stephen Haddrill, Director General of the FLA, said: “The Government’s commitment to growth and investment is good news, in particular the decision to make permanent the Annual Investment Allowance at £1m which the FLA has been pressing for.

“However, to maximise investment growth, the type of capital investment that qualifies for relief must take account of the prevailing economic conditions. In times of uncertainty when many firms want to hold onto cash reserves, leasing is the way to get new plant and equipment into the hands of understandably cautious business owners.

“Government borrowing tends to put upward pressure on interest rates, so while the measures announced today will be welcomed in business circles, the future health of the economy will rely on keeping inflation, which is outstripping that of our international competitors such as the US, under control.”