The UK Finance & Leasing
Association (FLA) has written to the Chancellor of the Exchequer
George Osborne in advance of next week’s emergency Budget –
stressing the importance of asset finance to help British
businesses to invest for economic recovery.

The association said that
the UK Government should:

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  • use the corporate tax system to support investment,
    particularly by smaller businesses who would find leasing more
    “cost-effective”;
  • ensure that any reforms to the corporate tax system at least
    allow the cost of equipment to be recovered over its economic
    life;
  • simplify the current accounting and procurement rules, which
    limit the ability of public services to lease equipment.

Julian Rose, head of asset
finance at the FLA, said: “The leasing industry can help economic
recovery by directly funding the equipment needed by business and
the public services.

“But to do that, we need two
things: a fair tax system that does not – as at present – favour
the purchase of equipment over renting; and the removal of
unnecessary barriers to the use of leasing by public services.”

The Chancellor will announce
his emergency Budget statement on June 22 at 12.30pm.

Antonio
Fabrizio

GlobalData Strategic Intelligence

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