The Finance and Leasing Association (FLA) has said that the measures announced in the Budget 2009 need to be followed by specific support from the government for the leasing and motor finance sectors.
FLA’s director general Stephen Sklaroff said that any increase in capital allowances was a positive sign, although the government was not making leasing easier for businesses.
Sklaroff said: “Many smaller firms need to lease equipment to run their businesses and today’s tax breaks are not available for leased equipment.”
Moreover, according to the association, the car scrappage scheme, which is hoped to increase demand for cars, will reinforce the need for some government action to help motor finance companies access funds at affordable rates.
Sklaroff said: “The success of the car scrappage scheme relies on motorists being able to replace their old cars.”
“For that to work, the finance needs to be available. We need government support now, to ensure motor finance companies can meet that demand.”