BLOG: 20 MARCH 2018
DAVENHAM'S VIEW ON THE SPRING STATEMENT FOR THE ASSET FINANCE SECTOR
We’ve now had a week to really absorb the Spring Statement from the Chancellor, with plenty of commentary and views on what it all means, but here at Davenham Asset Finance we’ve extracted the positives, and how the Statement will affect our industry.
As an overview, Philip Hammond in his Statement to Parliament, essentially wants to help people and businesses to be able to plan better with a view to creating an environment of stability.
Economy on the up
It was reassuring to see that our Economy is continuing to grow for the fifth consecutive year, against all expectations with 3 million jobs created since 2010 equivalent to the rate of 1,000 people appointed to roles per day. Of relevance to the Asset Finance market in particular as one of our core sectors, UK manufacturing has experienced 50 years of expansion, which is encouraging news.
Support for the construction sector
Construction firms will benefit from the £44billion investment programme to build the 300,000 new homes needed per year. Furthermore, approximately 60,000 first time buyers have benefited from the abolishment of stamp duty since the Autumn Budget.
Bringing forward the Business Rates review
Following on from the Autumn Budget where the revaluation of business rates was upgraded from every 5 years to every 3 years, on Tuesday, the Chancellor announced that the next review will be brought forward one year to 2021 allowing business to benefit earlier.
Improved intercity links
The Statement included an invitation for bids from cities for some of the £840million pot to improve their transport, with £1.7bn already given to Combined Authorities with Mayors. This again offers positivity for another of our asset finance markets which is great news.
Less digital downtime
Of the £190million Challenge Fund rolling out full fibre broadband for homes and businesses, announced in the Autumn Budget, the Spring Statement has identified 13 areas across the UK to receive the first £95million.
Tax system survey
Philip Hammond announced a number of potential changes to the tax system and invited views on these suggestions including:
Brexit on budget
We have to close on the B word! £1.5bn has been spent so far of the allocated 2-year £3bn budget allocated to departments managing our departure from the EU. Will we end up divorcing with money in the bank or having overspent in the process? This is one I’m sure we’ll continue to be updated on as the relationship talks continue.
So there you have it, a quick review of what we feel the main issues are for UK businesses, and in particular the asset finance market. If you’d like to discuss any of the points made above, please do get in touch with one of our team at Davenham Asset Finance on 0161 832 8484.
As an overview, Philip Hammond in his Statement to Parliament, essentially wants to help people and businesses to be able to plan better with a view to creating an environment of stability.
Economy on the up
It was reassuring to see that our Economy is continuing to grow for the fifth consecutive year, against all expectations with 3 million jobs created since 2010 equivalent to the rate of 1,000 people appointed to roles per day. Of relevance to the Asset Finance market in particular as one of our core sectors, UK manufacturing has experienced 50 years of expansion, which is encouraging news.
Support for the construction sector
Construction firms will benefit from the £44billion investment programme to build the 300,000 new homes needed per year. Furthermore, approximately 60,000 first time buyers have benefited from the abolishment of stamp duty since the Autumn Budget.
Bringing forward the Business Rates review
Following on from the Autumn Budget where the revaluation of business rates was upgraded from every 5 years to every 3 years, on Tuesday, the Chancellor announced that the next review will be brought forward one year to 2021 allowing business to benefit earlier.
Improved intercity links
The Statement included an invitation for bids from cities for some of the £840million pot to improve their transport, with £1.7bn already given to Combined Authorities with Mayors. This again offers positivity for another of our asset finance markets which is great news.
Less digital downtime
Of the £190million Challenge Fund rolling out full fibre broadband for homes and businesses, announced in the Autumn Budget, the Spring Statement has identified 13 areas across the UK to receive the first £95million.
Tax system survey
Philip Hammond announced a number of potential changes to the tax system and invited views on these suggestions including:
- Tax implications related to plastics recycling where any money generated would be used for research by universities and to generate greener products. This may be a result of the current plastics crisis as an effect of China’s decision to stop importing plastic recyclables, and you can read more on our blog on this here.
- Ensuring fairness is applied to multinational digital businesses.
- Assessment of cash versus increased electronic payments across all industries and how this affects the economy, including money laundering.
Brexit on budget
We have to close on the B word! £1.5bn has been spent so far of the allocated 2-year £3bn budget allocated to departments managing our departure from the EU. Will we end up divorcing with money in the bank or having overspent in the process? This is one I’m sure we’ll continue to be updated on as the relationship talks continue.
So there you have it, a quick review of what we feel the main issues are for UK businesses, and in particular the asset finance market. If you’d like to discuss any of the points made above, please do get in touch with one of our team at Davenham Asset Finance on 0161 832 8484.
