Businesses Ask for Investment

• 03.16.2015, 15:40
•  World

A major business group has said, that the amount firms can invest in plants and machinery from pre-tax profits should be frozen at its current limit.

The British Chambers of Commerce (BCC) has recommended the chancellor to make the current £500,000 annual investment allowance (AIA) for firms permanent. The allowance is due to fall to £25,000 at the end of December.

"This would help to achieve better balanced growth and to tackle the unacceptable uncertainty created by the constant chopping and changing of UK tax structures and incentives", - the BCC said.

Business investment fell 1.4% during the last year. Forecast for 2015 shows that business investment will drop from 7.5% to 3.5%, which will slow down growth rate for six year.