More than 200 companies and trade associations join CBI and Make UK call on full capital expensing
17 November 2023
Ahead of the Autumn Statement, the CBI, Make UK and Energy UK – backed by more than 200 companies and trade associations – have written to the Chancellor to ask that full capital expensing be made a permanent feature of the UK tax system.
Full text of the letter is as follows:
Dear Chancellor,
We are writing to ask you to make full expensing a permanent feature of the UK tax system in the Autumn Statement next week. At this time, we believe that this would have the single most transformational impact on business investment and growth and accelerate industry’s transition towards net zero.
It is a challenging time for the UK economy, with recent data showing that productivity has stagnated since 2008. If we are to tackle the pressures businesses face, we must create an environment that unlocks business investment to achieve sustainable growth and mobilise the potential and productivity of the UK workforce.
We welcome your decision in the Spring to introduce a three-year temporary full expensing regime for all plant and machinery. But OBR forecasts show that the temporary nature of the policy means most additional investment during this period will be brought forward, rather than being entirely new. This will limit the extent of productivity gains. Moreover, in many sectors, including manufacturing, investment cycles are far longer than three years, often spanning from five to seven to even thirty years, depending on the nature of that investment and the sector.
CBI and Make UK analysis, supported by other leading trade associations and business leaders, shows the significant impact introducing full expensing could have on UK business investment. Whilst there is an upfront cost, the long term benefit to the public finances will be positive as providing allowances up front enables greater investment, boosting employment and wider tax revenues. A recent report from the IFS supported this view. Finally, higher business investment, which would lead to a greater demand for capital in the economy, would also increase the long-run potential growth of the UK economy.
For the reasons above, therefore, we urge you to make this policy permanent to unlock much needed investment and drive productivity.
Best wishes,
Rain Newton-Smith
Chief Executive, CBI
Stephen Phipson CBE
Chief Executive, Make UK
Emma Pinchbeck
Chief Executive, Energy UK
Company Signatories
3P Innovation
A&M EDM Ltd
ABB
Addfield
Airbus
Alderman Toolin
Alloy Fabweld Ltd
Arcadis NV
Associated British Foods Plc
Astra Zeneca
Avara Foods
AXIOM
AXREM
Balmoral Tanks
Barratt
Beckett Thermal Solutions
Bensons Panels
Bentley Motors Ltd
BGB Group
Boneham Precision Engineered Solutions
Braime Group PLC
Bright Steels
Bristol Airport
Broadway & AVPE Systems
C. Brandauer and Co Ltd
Cambridge Rapid
Carl Kammerling International Ltd
CBE + Ltd
Cemex
Centrica
Cobra Beer
Coca-Cola Europacific Partners GB Ltd
Colchester Machine Solutions Ltd
CPI
Cullum Group
Dale Farm
Danbrit Holdings Ltd
Datesand Group
Denroy
Devenish
DHL
East Midlands Manufacturing Network
EDF
Edrington
Efaflex
Encirc360
Eschmann Technologies Ltd
Exxon Mobil
Fane Valley
Fedex
Fenner Precision Polymers
Fluorocarbon
Ford of Britain and Ireland
Fractory
Frederick Cooper
Freestyle
Frog Bikes
G&P Group Holdings Ltd
Gatwick Airport Ltd
Goodfellow Cambridge Ltd
GOS Engineering
Grant Thornton Northern Ireland
Ground Control Holdings Ltd
Groupe Atlantic UK, ROI & NA
Guttridge
HCM Engineering Ltd
Heller Machine Tools
Herbert Group
Hodgson Sealants
Hone All
Huxley Bertram Engineering Ltd
i2r Packaging Solutions
ICW
igus Ltd
Interfrigo
James Lister and Sons Ltd
JCM Fine Joinery
JJ Churchill
JJA Pack Ltd
Jonesco (Preston) Ltd
KBR Inc.
Keela
Kimal Group
Leonardo
Liberty Steel UK
Lighthouse
Luxfer Gas Cylinders
M Wright and Sons
Makin Metal Powders UK Ltd
Acres Engineering
Marchant Cain
Marketing Dimensions
Medilink Midlands
Mediplus
Mekatek Ltd
MEP
Merit
Metal Assemblies Ltd
Mpac Group plc
MSM Aerospace Fabricators
Nachural
Nasmyth
Nestlé UK Ltd
Nissan Motor Manufacturing UK
Olympus Technologies
Open Reach
P3 Medical Ltd
Paragraf
Penine Healthcare
Penlon
Pertemps Network Group
PHINIA
Photocentric
Pilz Automation Technology
Playdale Playgrounds
Produmax
Professional Polishing Services
RA Labone and Co
Rayner
Reaction Engines
Recticel Ltd
Redwood Technologies Group
Renishaw
Robert Bosch UK
Rockford
Rosh Engineering
Rutland Plastics
Safran Seats
Safran UK
Savekars Solutions Ltd
Schumacher Packaging
Severfield
Shoplight Ltd
Siemens
Siemens Digital Industries
Slack and Parr
SMC (UK) Ltd
Smith+Nephew
Solenis UK Industries
Sone Products
Specialised Canvas
Spirit AeroSystems UK
SSE
Stellantis
TBI Manufacturing Ltd
Techno Group
Tees Components
Texture Jet Ltd
The Expanded Metal Company
The Malcolm Group Limited
The Toro Company
Thomas Broadbent and Son Ltd
Thomas Storey Fabrications Group Ltd
Thorite
Tinsley Bridge
Titon
TMD Friction UK Ltd
TopHat
Toyota Motor Manufacturing (UK) Limited
Trent Industrial Textiles ltd
Tri-Wall UK
VIP Polymers
Weiss Technik UK
Wilton Universal Group
XLCC
Yamazaki Mazak UK Ltd
Trade Association Signatories
Association of British HealthTech Industries
The Association of the British Pharmaceutical Industry
ACT, the App Association
ADS Group
Airport Operators Association
Aluminium Federation
Association of Manufacturers and suppliers of Power Generating Systems
British Coatings Federation
British Compressed Air Society
British Fluid Power Association
British Printing Industries Association
British Pump Manufacturers Association
Composites UK
Confederation of British Metalforming
Construction Equipment Association
Construction Products Association
EEF Northern Ireland
Engineering and Machinery Alliance
Engineering and Manufacturing Network in North East England
Foodservice and Equipment Association
Future Humber
Galvanizers Association
GAMBICA
Home Builders Federation
Ipeco
Lighting Industry Association
Logistics UK
Manufacturing Northern Ireland
Manufacturing Technologies Association
Mineral Wool Insulation Manufacturers Association
Motorsport Industry Association
Northern Automotive Alliance
Offshore Energies UK
OSSL
Processing and Packaging Machinery Association
Renewable UK
Scottish Engineering
Smart Manufacturing Alliance
Society of Chemical Industry
techUK
The Food and Drink Federation
The Society of Motor Manufacturers and Traders - Mike Hawes, Chief Executive
The Technology Supply Chain - Richard Fallon, CEO
UK Weighing Federation - Charles Pullen, President