Responding to reports that the Chancellor will include a full expensing regime in next week’s Budget to replace the super-deduction, Sam Richards founder and campaign director of pro-growth campaign group, said:
“Next month businesses are facing a double whammy with Corporation Tax rising to 25% and the 130% capital allowance super deduction on qualifying plant and machinery investments coming to an end.
“Reports that Chancellor Jeremy Hunt is planning on introducing a full expensing scheme for the next 3-years, to replace the super deduction, are welcome.
"This would boost investment in U.K. renewables, such as offshore wind and solar, while improving our competitiveness as the US and EU move to support clean energy and renewable technologies.
“With the vast majority of major clean energy projects being developed outside London and the South East, increasing investment in clean energy infrastructure will deliver a significant economic boost and job creation in Britain’s former industrial heartlands.
“However, the Chancellor should look at making the scheme permanent so that businesses can properly plan for the future, especially as the costs of keeping this system will fall over time.”