A welcome relief for manufacturers uncertain about investing in new plant and machinery.
The Chancellor has confirmed the temporary £1m tax relief (up from £200k) on investments in plant and machinery has been extended by a year to January 2022.
Recent announcements about restrictions continuing at the same time as those about vaccines give us hope but make it difficult to plan. While the timeline for resuming normality is unclear, what is clear is that business will continue. For this reason plans need to be made; the only question is when they should be implemented.
Such plans might include financial restructuring but should look to the future. No business can stand still, despite the current uncertainty.
Is it better to take a chance on less than 100% certainty of an outcome than to wait for certainty? Traditional research and scenario modelling is useful heuristics can help. Our Board Briefing “Decision-Making in Times of Market and Economic Uncertainty” on the topic might be useful.