The Annual Investment Allowance has been raised from £200,000 to £1,000,000 and was a specific ‘ask’ from the MTA. “We are very pleased that the Chancellor agreed with us that it was wise move to boost investment in a difficult climate,” said MTA CEO James Selka.
“The change, which will apply to any purchase made on or after the 1 of January 2019, is a potentially huge boost for machinery and equipment suppliers over the next two years and should encourage more of our members' customers to invest in the latest technology.”
But there was more good news for manufacturers, as he noted: “It is also good news that there is also to be a new allowance for industrial buildings. The absence of such an allowance in the UK, when all our competitors have one, was a glaring anomaly and this new measure should stimulate investment.
“These changes are particularly welcome, as research we commissioned earlier this year demonstrated that the impact of manufacturing on the UK’s economy is much larger than often believed, with up to 23% of the economy impacted.”
The MTA’s Report into the True Impact of Manufacturing is available here: https://bit.ly/2IJobBo.
* The MTA is the UK’s trade association for companies in the manufacturing technology sector. Its members design, manufacture and supply the advanced machinery, equipment and intellectual property that enable the creation of the products that people rely on from day to day and that drive the economy.
Key aspects of manufacturing technology include; machine tools, cutting tools, metrology (measuring) equipment, additive manufacturing (3D printing), surface finishing, robotics and computer aided design and manufacturing products (CADCAM), as well as the technology that is enabling the digitalisation of manufacturing – the fourth industrial revolution. These combine to make up complete systems - increasingly automated and adaptive - that manufacturers deploy, making the sector fundamental to the prosperity, health and defence of the nation.
