Commenting on the Budget, Shanika Amarasekara, CEO of the FLA said:
“The Chancellor’s announcement is a pragmatic step forward, and we welcome the interim 40% first-year allowance for leased assets. While today’s Budget does not go as far as we and our members would have liked, it is clear that the principle of including leasing within full expensing has now been accepted by Government.
“In a challenging fiscal environment, this is a sensible holding position that supports business investment while wider reforms are developed. Leasing plays a critical role in enabling firms to invest in the equipment and technology they need—flexibly, cost-effectively, and in a way that aligns with how businesses choose to manage their cashflow and risk.
“We look forward to continuing our work with HM Treasury and HMRC to deliver the full expensing framework that will maximise growth and ensure firms can access the funding tools that best support their ambitions.”
Notes to Editors
- In 2024, FLA members provided £156 billion of new finance to UK businesses and households. £116 billion of this was in the form of consumer credit, almost a third of total new consumer credit written in the UK in 2024. £52 billion of it supported the purchase of new and used cars, including around 80% of private new car registrations.
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