UK leagues ahead of Italy and Germany over 2013 capex plans

But lack of investment in decent equipment and processes over past 12 months has cost UK plc £14bn in missed income

UK SMBs are planning to invest more than £45.8bn in building their businesses over the coming year, a 23 per cent increase on investment intentions last year.

Figures revealed in GE Capital’s SME Capex Barometer highlighted a move to upgrade existing equipment to enhance efficiency and productivity. This includes a 34 per cent increase in IT hardware across the UK, Germany, France and Italy over the coming year.

GE Capital revealed that the UK is in a stronger position than Germany and Italy, which both posted double-digit decreases in capex intentions for 2013. However, France is closer to the UK, revealing a 20 per cent increase to its expenditure in the coming year.

The survey also revealed that SMBs are planning to take on more staff in the coming year, providing a much-needed boost to UK employment figures. The report estimated that about 452,000 people will be employed by UK SMBs in 2013 – up 20 per cent on the previous year.

Interestingly for the channel, the figures found that UK businesses experienced the biggest losses due to out-of-date or inefficient equipment – up 51 per cent, compared with a rise of 16 per cent in Germany and a drop of eight per cent and 23 per cent in Italy and France respectively.

This equates to £14bn in net missed income over the past 12 months, the report claims.

John Jenkins, chief executive of GE Capital UK, said: “After a period of underinvestment brought on by broader economic uncertainty, it is good to see UK businesses once again looking to increase investment in capital expenditure and creating new jobs.

"In particular, a drive to modernise and upgrade equipment should spark a corresponding increase in productivity. This is a welcome sign for the UK economy and will provide a boost to wider economic recovery.”