News
Recent news
Asset finance could open door to SME energy savings, says FLA
The FLA has written to the Chancellor of the Exchequer with a proposal supporting investment in energy-efficient equipment by small businesses.
The FLA believes that the Chancellor can boost small business investment in energy-saving equipment by simplifying the current system of Enhanced Capital Allowances (ECAs).
Making sure ECAs are available for green equipment finance loans would enable many small businesses to meet the challenge of high energy prices, and help UK energy-efficient equipment manufacturers (many of whom were established with Government grants) find a broader and more secure market for their products.
The FLA’s proposal follows the recent announcement of the Carbon Trust’s partnership with Siemens Financial Services to provide UK businesses with green equipment finance worth up to £550 million over the next three years.
Julian Rose, head of asset finance at the FLA, said:
“The Carbon Trust’s recognition of asset finance as an important means of funding small business investment in green technology shows the scope for real progress in reducing energy use in business. The Government should now use the forthcoming Budget Statement to make Enhanced Capital Allowances work better for a low-carbon economy.”
The issue will be debated at an Asset Finance for a Low Carbon Economy seminar on 30 March, which will include contributions from FLA members Siemens, Barclays, the Co-operative Bank, HSBC and Compass Business Finance.
- ends -
Note to editors:
In 2010 FLA members provided £69.8 billion of new finance to UK businesses and households. £19.6 billion of finance was provided to businesses and the public sector, representing around a quarter of all fixed capital investment (excluding real property and own-account software) in the UK last year. £50.2 billion was in the form of consumer credit, representing a third of all unsecured lending in the UK. And £18.4 billion supported the purchase of more than half of private new car registrations in the UK.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993