Adur, West & East Worthing Party including East Arun

Capital Allowance will boost manufacturing and jobs – Birtwistle

Commenting on temporary increase in the Additional Investment Allowance from £25,000 to £250,000 for two years, Co-Chair of the Liberal Democrat Parliamentary Party Committee on Business, Innovation and Skills, Gordon Birtwistle, who campaigned for this temporary increase, 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.

“This will particularly benefit small and medium-sized businesses and investment in new machinery will in turn help to boost the economy.

“Increasing productivity in the manufacturing sector is hugely beneficial to the economy 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 delivering key initiatives to help 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.”

ENDS

Notes to editors:

  1. In the letter to the Prime Minister and the Chancellor, Gordon Birtwistle included a copy of his recent economic growth proposal report on Capital Allowances and the Construction of New Affordable Homes.

 

  1. The report promotes an introduction of 100% capital allowance on all capital purchases for the next two years to encourage companies to draw on cash reserves to invest in new capital assets.