FLA statement on Chancellor’s Growth Plan

Commenting on the Chancellor’s Growth Plan, Stephen Haddrill, Director General of the FLA, said:

“The Government’s commitment to growth and investment is good news, in particular the decision to make permanent the Annual Investment Allowance at £1m which the FLA has been pressing for.  

“However, to maximise investment growth, the type of capital investment that qualifies for relief must take account of the prevailing economic conditions. In times of uncertainty when many firms want to hold on to cash reserves, leasing is the way to get new plant and equipment into the hands of understandably cautious business owners. 

“Government borrowing tends to put upward pressure on interest rates, so while the measures announced today will be welcomed in business circles, the future health of the economy will rely on keeping inflation, which is outstripping that of our international competitors such as the US, under control.” 

 Note to editors:

1. In 2021, members of the Finance & Leasing Association (FLA) provided £132 billion of new finance to UK businesses, households and the public sector.  
2. Of this total, £47 billion was provided by non-bank lenders. £31 billion was provided in the form of asset finance to businesses - £20 billion of which went to SMEs to fund new equipment, plant and machinery, or purchased software. £101 billion was provided in the form of consumer credit, which includes £45 billion of motor finance supporting the purchase of 92% of all private new car registrations.
3. For media enquiries, please contact the FLA press office on 020 7420 9656.