FLA responds to Plan for Productivity

Commenting on the announcement of the Government’s productivity plan, Fixing the Foundations, Stephen Sklaroff, Director General of the Finance & Leasing Association (FLA), said:

“Today’s announcement from the Government underlines the crucial importance of productivity to the UK economy.

“The asset finance (leasing and hire purchase) industry, whose own productivity was shown in recent research from Oxford Economics to be seven times the UK average, is helping British businesses of all sizes invest in new equipment, secure jobs and boost national productivity.

“We look forward to working with the Bank of England and the Treasury as they try to improve the measurement of finance for productive investment, £26 billion of which was provided by the asset finance industry in 2014”

Note to editors:

1. An executive summary of the Oxford Economics research, measuring FLA members’ contribution to the UK economy, can be found on the FLA website.

2. Oxford Economics is one of the world’s foremost independent global advisory firms, using industry models and analytical tools to provide reports and forecast trends.

3. In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £74 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK last year. £26 billion of finance was provided to businesses and the public sector. FLA members financed more than 27% of UK investment in machinery, equipment and purchased software last year.