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:

  • use the corporate tax system to support investment,
    particularly by smaller businesses who would find leasing more
  • ensure that any reforms to the corporate tax system at least
    allow the cost of equipment to be recovered over its economic
  • 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.