Boost for Manufacturing and Jobs with Increased Allowance against Tax on Capital Purchases
Liberal Democrat MP for Burnley, Gordon Birtwistle, who has been campaigning for years for help for manufacturing firms was delighted last December when an important tax relief measure was announced. Now Gordon, Chair of the Liberal Democrat Parliamentary Party Committee on Business, Innovation and Skills has seen this help take effect at the start of this financial year.
Small and Medium-Sized businesses will benefit from a ten-fold increase from £25,000 to £250,000 for two years in the Additional Investment Allowance. This is the sum that can be offset against tax when the company invests in new machinery.
Commenting, Gordon said:
"It's fantastic the Coalition has recognised the importance of manufacturing to the British economy and is supporting businesses by introducing a 100% allowance on capital purchases up to £250,000. It will particularly benefit small and medium-sized businesses and investment in new machinery will in turn help to boost the economy.
"Increasing productivity in our manufacturing sector is hugely beneficial to this country and will provide more jobs. Giving companies an incentive to invest is immensely important and I am pleased the Coalition Government is getting behind industry.
"Liberal Democrats are committed to closing the skills gap, increasing apprenticeships and helping businesses of all size across the country grow and succeed.
"As a party, Liberal Democrats have always supported manufacturing and engineering in the UK. In the Coalition Government, Liberal Democrats have made it a priority to increase manufacturing as a percentage of GDP and address the issues which have slowed manufacturing down in recent years."