Peter Harvey

The Fork Lift Truck Association (FLTA) has welcomed the Chancellor's Northern Autumn Statement of a temporary 10-fold increase in UK companies' annual investment allowance.

From 1 January 2013, for a period of two years, the limit of this relief from Corporation Tax will increase from GBP25,000 to GBP250,000 (USD40,623 to USD406,212). It means that 100% tax relief will apply to capital spending up to that amount on eligible items including tools, equipment, plant and machinery.

The change comes as part of a package, which the Chancellor, George Osborne, believes will encourage growth. There will also be a general reduction of 1% in Corporation Tax from April 2014.

FLTA CEO Peter Harvey says: "This is certainly good news for the materials handling industry. Despite difficult economic circumstances, our sector is continuing to recover - and in fact there are signs that we are actually outperforming other industries in this respect. Anything that encourages further investment will be another boost to that recovery."

British Industrial Truck Association (BITA) also welcomes the Chancellor's action to stimulate business investment.

Secretary general James Clark says that with tight budgets and squeezed margins, customers have reacted to the current unpredictable market conditions by being more cautious in placing orders. "Having said that, the evidence from the number of enquiries our members continue to receive is that the demand is still there. Therefore, any assistance from the government is to be applauded.

"Measures such as (these) could make all the difference when it comes to convincing companies they should place an order for machinery."

Forkliftaction.com News contacted UK firms for their response to the change but did not receive a response by press time.