Permanent full expensing
Think tank: Centre for Policy Studies
Author(s): Karl Williams; Tom Clougherty
November 16, 2023
This report from UK think tank the Centre for Policy Studies argues in favour of making the current version of full expensing permanent.
Introduced on a temporary three-year basis in the Spring Budget of 2023, initial evidence suggests full expensing has been relatively successful, leading to increased business investment, productivity, and economic growth.
In this briefing note, Karl Williams and Tom Clougherty, argue in favour of making the current version of full expensing permanent in order to boost long-run capital stock, increase wages, and bolster the economy. While the OBR has raised concerns over the costs of making the measure permanent, the note argues that this is the result of short-term thinking and that in the long run, the cost of full expensing would be substantially offset by the economic benefits, or even outweighed altogether.
