Wednesday 5th December 2012
John Leech, UK Head of Automotive at KPMG, said:
“Autumn Statement will bring cheer to UK manufacturers. The surprise headline which has captured all the attention is the two year 100% Additional Investment Allowance tax relief for expenditure on plant & machinery up to £250,000, which will stimulate investment by SMEs and will boost the supply chains of our large manufacturers, such as Jaguar Land Rover (JLR) and Rolls-Royce.
“The government has listened to industry’s complaints about the lack of availability of credit from banks and underlined three key initiatives. Firstly further funding for the Regional Growth Fund and Local Enterprise Partnerships will boost manufacturers looking to expand employment. Exporters to emerging markets are a particular source of growth for the economy and they will benefit from the £1.5 billion export financing plan announced. Finally, the Business Bank will provide £1 billion of credit to SMEs who are struggling to raise debt finance.
“UK manufacturers that are growing through exports to emerging markets will benefit from the Chancellor’s Autumn Statement. These manufacturers’ supply chains are struggling to access credit and are finding it difficult to invest in new plant and machinery. The government has tempered these concerns through the Additional Investment Allowance and additional funding for the Regional Growth Fund and Local Enterprise Partnerships.”
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Arti Mohan, Corporate Communications
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KPMG Press office
Tel: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.