Manufacturers call on Government to shelve capital allowance plans
19 November 2008
Chancellor Alistair Darling
Chancellor Alistair Darling and business secretary Lord Mandelson have today received an open letter from the SMMT, which represents the interests of car makers, calling for a host of measures to stimulate the market including changes to capital allowances.
The five main points of the SMMT's letter call for:
1) Scrapping plans for increased VED and new first-year rate to help RVs and encourage buyers back to the market.
2) Increased capital allowances for fleet buyers, particularly for buyers of commercial vehicles, to stimulate immediate demand.
3) Shelve plans for next year's business car capital allowance reforms.
4) Remove expensive car restrictions under capital allowances to help demand for UK higher end manufacturers.
5) Allowing manufacturers' finance companies access to the funding available to banks through the special liquidity arrangements. This would allow them to support customers and their franchise networks.
The call comes a few days before the Chancellor's 2008 pre-Budget statement, due Monday.
Paul Everitt, SMMT chief executive, said: "The pre-Budget report should set out the strategy and measures needed to restore consumer confidence and support valuable industrial capability during this difficult period."