Hauliers want help to invest
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by Jane Sayer • Most transport companies want investment incentives to be among the top priorities given by the Chancellor in his Budget next week.
In a nationwide survey by finance house Barclays Mercantile, the reintroduction of 40% first-year capital allowances was requested by more than half of the distribution firms questioned. Of the 70 haulage company directors polled, 54% listed this as one of three most important measures Kenneth Clarke could announce. Lower National Insurance contributions was the second most popular request, chosen by 41%, as companies prepare to recruit staff. And 39% wanted a reduction in interest rates. The directors were invited to "tell the Chancellor" their three top preferred measures from 16.
David Owen, marketing manager at Barclays Mercantile, says although 40% first-year capital allowances were available from 1 November 1992 to 31 October 1993, it was during the recession and companies were not making enough money to spend it and claim back tax relief: "Now industry is saying bring it back because we are ready to invest," he says.