Building on the positive impact the scrappage incentive of 2009 had on both the environment and the ailing automotive industry, the government has approved the doubling of the annual investment allowance for small businesses. A great step, the Society of Motor Manufacturers and Traders (SMMT) believes.
"Measures to encourage more and better priced lending to consumers and businesses, alongside additional support for investment in low carbon vehicle technologies is further evidence of the new priority given to UK motor manufacturing," Paul Everitt, SMMT CEO said according to just-auto.com.
"There is disappointment that the introduction of the first year VED rates have not been deferred, but the doubling of the annual investment allowance will give a lift to the commercial vehicle market."
The budget approved for the task, and the task it will be used for is listed below.
- 30 million pounds from the Strategic Investment Fund to support development of low carbon vehicles
- the creation of a Nuneaton ‘intelligent transport technology' test centre
- the development of low and ultra-low carbon vehicle supply chains
- the setup of the second Green Bus competition
- support for the SMEs through the UK ‘finance for growth' scheme and provision of measures to encourage lending
- the introduction of a lower 5 percent rate of company car tax for vehicles emitting between 1 and 75g/km CO2 100 percent first-year capital allowance for zero-carbon goods vehicles