I hailed the impact of the UK Government Annual Investment Allowance (AIA) policy in helping to boost economic growth.
During Treasury questions in the House of Commons today, I highlighted shortbread manufacturers Dean’s of Huntly as one local firm which had invested in new facilities as a result.
Chancellor Philip Hammond announced in his Budget in November last year of a temporary increase in the AIA to £1million for a two-year period from January 1 2019 to December 31, 2020.
That means companies can claim 100% tax relief on investment in plant and machinery during that period. The policy was aimed at boosting investment across the UK and was backed by the UK Chambers of Commerce.
“Dean’s shortbread based in Gordon have been encouraged by the Annual Investment Allowance to invest in new facilities.
“Does my right honourable friend agree this policy is stimulating business to release the pent up investment and demonstrates the confidence of UK companies.”
In response, Jesse Norman, financial secretary to the Treasury, said:
“I am delighted to hear the news that my honourable friend of new investment in his constituency.
“I take my hat off to Deans Shortbread
“As he knows, the two-year increase in the Annual Investment Allowance, which the Chancellor announced in the Budget, is helping firms right across the country to invest in new plant and machinery.
“(It) gives 100% first year tax relief on the first 1m of eligible investment and helps small and medium-sized businesses like Deans of Huntly to grow.”