No More Half Measures: Willis Must Deliver Full Expensing

The Taxpayers’ Union is calling on Nicola Willis to be bold and adopt full capital expensing to give firms the certainty they need, among reports that the Investment Boost programme has failed to spark the confidence firms need to invest.

Taxpayers’ Union spokesperson Tory Relf said:

“While the Government’s Investment Boost programme was a small step in the right direction, it hasn’t gone far enough. We called it at the time – the programme lacked the ambition needed and was destined to become a flop. Business owners are still left without the confidence they need to commit to new investment.”

“Unlike the limited 20 percent Investment Boost, full capital expensing would allow businesses to immediately deduct the full cost of new equipment, machinery, and technology. That puts more cash in the hands of firms right away, making it easier to take on ambitious projects and invest in growth.”

“Full expensing has already been shown to work overseas. In the United States and the United Kingdom it drove higher business investment, productivity, and even boosted tax revenue over time. If Willis is serious about getting the economy moving, she should be ambitious and deliver the policy in full.”

"How much more advice will it take for Willis to do the right thing? She travelled to the UK, where the Adam Smith Institute gave her the exact same advice - full capital expensing is a tried-and-tested way to boost growth."

“If Nicola Willis wants a plan that actually gets businesses investing, she should read our report, Going for Growth: Full Expensing of Capital Expenditure.”