In anticipation of the Autumn Statement, UK manufacturers, represented by Make UK, are urging the Chancellor to make full expensing a permanent feature, considering it a pivotal measure to stimulate business investment. This call follows a survey revealing that a majority of manufacturers support the move, emphasizing the need for long-term policy certainty and stability.
The proposal to make full expensing a permanent feature aims to encourage investment by manufacturers, especially since their average investment cycle often spans five years or more. The original three-year plan might not have had a significant impact on decisions for businesses with longer investment cycles.
The survey highlights that frequent changes to incentives and their short-term nature have dissuaded investment decisions. Manufacturers believe that better, more accessible, and longer-term incentives would make investing in the UK easier to justify. Make UK contends that making full expensing a permanent feature would be a bold move by the Chancellor to enhance domestic investment, especially in the context of the Global Investment Summit scheduled later in the month.
Verity Davidge, Director of Policy at Make UK, emphasized the importance of a step change in investment for breaking the cycle of business investment challenges in the UK. The survey findings reveal that almost half of companies perceive the UK’s business tax and regulatory environment as unfavorable, with a significant majority stating that better incentives elsewhere make investing in the UK more challenging.
According to the survey, over half of the companies believe that frequent changes to investment incentives in the last three years have complicated investment planning. Make UK suggests that making full expensing permanent would provide the stability and certainty necessary for investment decisions.
The survey, conducted between September 29 and October 13, involved 150 companies and shed light on the challenges and perceptions of the business environment for manufacturers in the UK.