More than 200 companies and trade associations join CBI and Make UK call on full capital expensing

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