Industry calls for updated Green Super-Deduction
Eight leading trade associations have urged the government introduce a new Green Super-Deduction when the existing programme when it comes to an end in March.
The BVRLA, CECA, EAMA, FLA, Forum of Private Business, Logistics UK, Make UK and MTA have all written the Chancellor calling for a new programme that will support the transition to net zero.
The letter also recommends a new Super-Deduction that is available for leasing or short-term hire, arguing that SMEs especially may want to maintain more flexibility with their cash flow.
Simon Goldie, director of business at the FLA, said: “Net Zero preparations are no longer the preserve of large firms with big budgets. Green investment is now a competitive issue for firms of all sizes because those credentials matter to suppliers, partners and customers.
“It’s vital that a Green Super Deduction is put in place to help SMEs, but it also has to be a programme that allows businesses to choose the right funding option for their investment and their circumstances. Leasing and short-term hire are key to the funding mix, and any Super Deduction that does not include them is flawed by design.”
Meanwhile, Toby Poston, BVRLA director of corporate affairs, said: “The leasing and rental exclusion in the current regime has created an unfair playing field that is hindering SMEs from making the leap to zero emission commercial vehicles. The enhanced allowances we’re recommending would boost business investment in zero emission technology and support the government’s ambitious phase-out targets.”
