The chancellor should raise the Annual Investment Allowance permanently if it wants to get the economy moving, according to trade financier Syscap.
Philip White, chief executive of Syscap, said the more generous Annual Investment Allowance announced in the Autumn Statement is good news – but does not go far enough.
"It would send a really strong signal to business owners if he [chancellor George Osborne] used his next Budget to make a more generous allowance permanent.
"For many businesses two years is a relatively short period of time to plan and carry out a major investment that might mean completely transforming the way they do business. That planning process can be expensive and time consuming," he said.
White (pictured) noted that the Annual Investment Allowance has changed several times in recent years. The previous government raised it from £50,000 to £100,000 at the beginning of the recession, but then it was slashed to £25,000 in April 2012.
A more generous allowance would encourage smaller businesses in particular to invest in equipment and technology, White said, and businesses need the ability to plan their spending over longer periods.
"Control interest rates"
White added that there had been too much speculation ahead of Monetary Policy Committee meetings over whether interest rates will rise.
"The uncertainty is damaging for businesses, and the Bank of England should end it," he said.
Further measures could include lease purchasing and other asset-backed loans being incorporated into the Bank of England's quantitative easing measures, and also making SMB lending eligible for its Funding for Lending Scheme via independent leasing firms.
Syscap also wants the proposed business bank to use existing finance companies – such as itself – for SMB funding.
Outsourcer says the size of the operation should be considered before criticising the error that affected 43,000 women
Vendor says a range of its products will be made SD-WAN compatible, with traditional networking 'completely under disruption'
With just a day to go until the 25th annual Channel Awards, we catch up with the SMB Reseller of the Year category sponsor Exertis, to find out why the sector is such a vital part of its business strategy
Analyst predicts spending on Robotic Process Automation will rise XX per cent next year, driven by price decreases