The UK government’s budget for 2023 has brought about several changes in tax policies and funding initiatives aimed at addressing the challenges posed by the post-pandemic economy. From the replacement of the Super Deduction Tax with the introduction of a full capital expensing program for the next three years to the creation of 12 new UK investment zones, Konektio is here to break it down for you.
One of the most promising announcements is the forecast by the Office for Budget Responsibility that inflation will drop from 10.7% at the end of last year to 2.9% by the end of 2023. Another significant change for businesses is the replacement of the Super Deduction Tax with the introduction of a full capital expensing program for the next three years. Under this program, companies will be able to write off the full cost of qualifying plants and machinery investments in the year they invest, providing a significant boost to capital investment. With these savings, now would be a great time to optimise your maintenance schedules for your new machinery through AssetMinder Predict’s condition-based monitoring solution. Contact us to learn more.
However, there are changes that will have a negative impact on some businesses, including the cut to funding for the Energy Bill Relief Scheme (EBRS), which is being replaced with the Energy Bills Discount Scheme (EBRS). While the Energy Bills Discount Scheme will offer support to businesses looking to reduce their energy costs, the total funding will be capped at £5.5 billion over the 12 months from April 1, 2023, to March 31, 2024. Due to reduced support in energy costs, tools like AssetMinder Impact offer manufacturers the opportunity to measure their per-asset energy output and use actionable insights to reduce overall energy costs. Contact us to learn more.
The government’s creation of new UK investment zones is also a significant opportunity for businesses. The zones below will benefit from generous tax incentives and are designed to drive growth in key future sectors, as well as attract businesses to underdeveloped parts of the country:
- The proposed East Midlands Mayoral Combined County Authority
- Greater Manchester Mayoral Combined Authority
- Liverpool City Region Mayoral Combined Authority
- The proposed North East Mayoral Combined Authority
- South Yorkshire Mayoral Combined Authority
- Tees Valley Mayoral Combined Authority
- West Midlands Mayoral Combined Authority
- West Yorkshire Mayoral Combined Authority
If you’re a business owner, it’s essential to stay informed about the changes and how they may affect your company. With the Energy Bills Discount Scheme set to run for at least 12 months, now is the perfect time to start taking advantage of solutions like AssetMinder® Impact and reduce your energy costs and support sustainability compliances. By staying up-to-date and making informed decisions, you can make the most of the opportunities presented by the UK government’s budget for 2023.
Konektio is at the forefront of the rapidly expanding Industrial IoT (“IIoT”) technology sector, digitally transforming the global manufacturing industry via smart cloud-based platforms. Konektio helps industrial customers reduce energy/utility costs, track and reduce carbon emissions and monitor/maintain their equipment effectiveness via its suite of SaaS solutions. We have served a wide range of industrial manufacturing, processing, and utility customers with digital solutions for over five years with our teams having decades of experience in the industrial sector. We have customers across the UK, Europe, and the USA and are continuing to scale up our commercial activities with the recent launch of two newly developed and upgraded SaaS solutions: Predict (intelligent machine analytics and condition-based monitoring) and Impact (Energy efficiency, carbon calculations, and water/air/gas/electricity monitoring) in one single platform for use by site managers and C-level executives.