Manufacturers call for bigger investment allowance
EEF calls for five-fold increase in annual investment allowance in upcoming Budget
Manufacturing industry body EEF wants the government to temporarily increase
the investment allowance for manufacturers in the upcoming budget.
Warning that output would contract by 10 per cent this year, the body argued
that short-term measures were urgently needed to avoid corporate collapses and
greater unemployment.
EEF is calling for a five-fold increase in the annual investment allowance,
taking it from £50,000 to £250,000. It is a 100 per cent allowance for business
expenditure on plant and machinery, excluding cars and can be claimed by
businesses of any size.
EEF is also lobbying for a number of other tax changes for inclusion in the
April 22 budget. It wants relief on business rates on empty property to be
restored, a temporary extension of a payable R&D tax credit for low-carbon
companies and a temporary scrappage incentive scheme for motor vehicle
manufacturers.
