It wont get the attention it deserves but Rishi Sunak's biggest giveaway over the next couple of years is the "Super Deduction"
It's costing a whopping £27 BILLION pounds
It's costing a whopping £27 BILLION pounds
Yet despite the £27 billion price tag, the Office for Budget Responsibility has big questions.
Rather than boosting growth overall, "it provides companies with a very strong incentive to bring forward investment from future
periods"
Rather than boosting growth overall, "it provides companies with a very strong incentive to bring forward investment from future
periods"
The scale of spending - most of which takes place in 2021 and 2022 - may rise. And the benefits may be lower than predicted.
"We have applied a ‘very high’ uncertainty rating to the behavioural element and the overall costing", says the OBR
"We have applied a ‘very high’ uncertainty rating to the behavioural element and the overall costing", says the OBR
The companies which benefit, the OBR says, see "very large temporary
increases" on the allowances.
"Not only are the rates
generous, but they are not limited by value," says the OBR
increases" on the allowances.
"Not only are the rates
generous, but they are not limited by value," says the OBR
The Super Deduction policy was championed by the Adam Smith Institute who welcomed it tonight
"We'd estimated at 100% full expensing would be worth over £2,214 per worker, going beyond that is a bold move to help the private sector build the recovery."
"We'd estimated at 100% full expensing would be worth over £2,214 per worker, going beyond that is a bold move to help the private sector build the recovery."
Here is the report by the Adam Smith Institute which recommended the Super Deduction policy. They called it the "factory tax"
static1.squarespace.com/static/56eddde…
static1.squarespace.com/static/56eddde…
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