Budget tax incentives boost Lorien CapEx project work

April 2021

There are early signs that a Budget incentive to stimulate capital expenditure is having the desired effect, with Lorien receiving a year-on-year increase in large-scale enquiries.

The ‘super deduction’ announced in the March UK Budget means that, from 1 April 2021, companies can claim 130% capital allowances on qualifying plant and machinery investments.  Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.  There is also a 50% first-year allowance (FYA) for special rate (including long life) assets. 

The measures run until the end of March 2023.

The move was prompted by a fall in business investment levels since the start of the Covid-19 pandemic. The Chancellor hopes the measures will give companies a strong incentive to make additional investments, and to bring planned investments forward.

Matthew Hidderley, Head of Sales & Marketing at Lorien Engineering Solutions, said: “We are seeing an increase in capital expenditure projects, with more enquiries based around larger projects.  We have several capacity increase projects ongoing through to factory extensions, equipment upgrades and roof replacement projects.” 

“Engineering design and project management work has increased for feasibility studies, masterplanning and large project implementations including greenfield site developments in EMEA since the budget announcement.”

“It appears that the Chancellor’s tax incentives are encouraging people to get cracking now rather than waiting any longer.”

Lorien specialises in capital projects working across multiple industrial sectors including: food and drink, brewing, advanced manufacturing, logistics and life sciences including pharmaceutical, health and wellbeing, household and light chemistry.

Lorien Engineering Solutions is a division of GP Strategies, a global solutions provider of management consulting and engineering services with over 4000 employees in over 30 countries including Lorien’s headquarters in Burton-upon-Trent, UK, and international offices in Poland and South Africa.