Measures announced by the UK government in today’s ‘Autumn Statement’ related to tax relief on investment by companies and credit initiatives, will benefit small and medium sized firms in the UK automotive supply chain, according to consultants KPMG.
John Leech, UK Head of Automotive at KPMG, said that the Autumn Statement will bring cheer to UK manufacturers.
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“The surprise headline which has captured all the attention is the two year 100% Additional Investment Allowance tax relief for expenditure on plant & machinery up to GBP250,000, which will stimulate investment by SMEs and will boost the supply chains of firms such as Jaguar Land Rover (JLR) and Rolls-Royce.”
Leech also said that the UK government has listened to industry’s complaints about the lack of availability of credit from banks and underlined three key initiatives.
“Firstly further funding for the Regional Growth Fund and Local Enterprise Partnerships will boost manufacturers looking to expand employment. Exporters to emerging markets are a particular source of growth for the economy and they will benefit from the GBP1.5bn export financing plan announced. Finally, the Business Bank will provide GBP1bn of credit to SMEs who are struggling to raise debt finance.
“UK manufacturers that are growing through exports to emerging markets will benefit from the Chancellor’s Autumn Statement,” he said. “These manufacturers’ supply chains are struggling to access credit and are finding it difficult to invest in new plant and machinery. The government has tempered these concerns through the Additional Investment Allowance and additional funding for the Regional Growth Fund and Local Enterprise Partnerships.”
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