The FLA has pointed out to the Chancellor how the leasing industry can help British businesses invest for economic recovery.
A third of all UK businesses, many of whom cannot access other forms of lending, already use leasing to support investment in new equipment. It avoids the need to find the full purchase price, and helps ensure that businesses always have up-to-date and functional equipment, according to the FLA.
Leasing can also play an important role in reducing the cost of public services says the FLA. The Government's Spending Review Framework, announced last week, made clear that options for non-state involvement in services should be considered by Government departments. Leasing should be part of this, according to the FLA.
Commenting, Julian Rose, head of asset finance at the FLA, said: "The leasing industry can help economic recovery by directly funding the equipment needed by business and the public services. But to do that we need two things: a fair tax system that does not - as at present - favour the purchase of equipment over renting; and the removal of unnecessary barriers to the use of leasing by public services, so allowing public money to be spent cost-effectively on newer, energy-efficient equipment."
