Labour’s business tax roadmap will allow businesses to invest with confidence – London Business News | Londonlovesbusiness.com

The biggest 2022 investment areas for all companies were buildings (excluding dwellings) and intellectual property products, followed by machinery and equipment.

Further supporting its intention to give more stability and certainty on business tax, the Labour manifesto promised a Business Tax Roadmap which is intended to allow businesses to plan investments with more confidence.

Labour previously stated that we could expect the Roadmap to be published in its first six months of Government and it would provide clarity on any scheduled changes to corporation tax reliefs and capital allowances for five years, including setting out a timetable for planned reforms.

Investing in commercial property not only allows small businesses to have a regular rental income, it also offers the potential for capital appreciation over time.

The biggest increase from 2021 however, was in machinery and equipment – a 20% increase – with a 53% increase in investment in transport. Dwellings saw a slight decrease (2%) in investment.

With increased confidence, and GDP increases in 2024, it makes sense that businesses will continue to invest in machinery and equipment to further their growth.

In terms of sectors, real estate activities saw the most business investment overall, of more than £142 billion in 2022, followed by construction at £41 billion.

Accommodation and food services saw a 31% increase in investment, the largest growth of all industries, after the lockdown in the UK due to the worldwide pandemic which ended in July 2021.

This was followed by Information and Communication, which saw a 24% increase.

Conversely, the biggest decreases were in Other Service Activities (26%) and Manufacturing (16%).