Funding and tax relief for plant and machinery buyers will stimulate both ends of the construction industry, said John Leech, UK head of automotive at KPMG.
“The autumn statement will bring cheer to UK manufacturers. The surprise headline which has captured all the attention is the two year 100% additional investment allowance tax relief for expenditure on plant and machinery up to £250,000, which will stimulate investment by SMEs and will boost the supply chains of our large manufacturers, such as Jaguar Land Rover (JLR) and Rolls-Royce.
“The 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 £1.5 billion export financing plan announced. Finally, the Business Bank will provide £1 billion 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. 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.”