New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 1% in February 2021 compared with the same month in 2020. 

The plant and machinery finance and commercial vehicle finance sectors reported new business up in February by 14% and 8% respectively, compared with the same month in 2020.  By contrast, the IT equipment finance and business equipment finance sectors reported falls in new business of 20% and 24% respectively, over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“In February, the asset finance market reported new business growth for the first time in more than a year. FLA members reported growth in new finance for a range of assets including agricultural equipment, manufacturing equipment and printing equipment.

“While the FLA welcomes the measures announced in the Budget to ensure that a strong pick-up in business investment is part of the UK economic recovery, we urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing. The asset finance industry has a proven track record in supporting businesses to invest in a wide range of machinery and equipment, with as much as 40% of this investment in the UK funded by FLA members.” 

 Note to editors:

1. In 2020, FLA members provided £113 billion of new finance to UK businesses and households.  £27 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2020.
2. For media enquiries, please contact the FLA press office on 020 7420 9656.