The 2013 UK budget contained little of direct consequence to the leasing and asset finance industry, however benefits for SMEs and a new construction drive could provide knock-on benefits.

Chancellor George Osborne announced a £15bn (€17.6bn) boost in capital spending over the next decade, with £3bn a year to be spent on infrastructure from 2015-16.

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He also said the government will invest in housing and plans to build 15,000 more affordable homes in addition to a fivefold increase in funding for building for rent; a boost for housebuilders, which may generate demand for construction-related assets.

SME’s should also gain a little from Osborne’s plans, which include the Bank of England’s Monetary Policy Committee (MPC) issuing forward guidance on interest rates. It is hoped this will allow for better forward financial planning, as well as building confidence in any continued low rates.

Philip White, chief executive of broker Syscap, said this was "a great way to encourage businesses to invest in assets to fuel growth," and avoiding unsettling speculation on interest rates, "without costing the country a penny."

In the budget day document ‘Overview of Tax Legislation and Rates’, HMRC outlined proposals for simplifying income tax for very small businesses, so they no longer have to differentiate between revenue and capital expenditure. This measure will allow approximately 3 million small businesses to offset their lease rental costs against income tax rather than calculating tax capital allowances.

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Julian Rose, head of asset finance at the Finance and Leasing Association (FLA), said: "It has never made sense for small businesses to have to treat leased equipment as if they owned it and our research shows that many businesses lost out on tax benefits because they either didn’t understand the rules or have the profits to offset the tax allowances against.

"This change will help tens of thousands of businesses invest in new equipment through leasing."

Osborne briefly mentioned the new government Business Bank although only to say detailed plans on how the bank will operate will be revealed later in the year.

The FLA is keen to see asset finance included in the Treasury’s latest credit easing scheme and will also welcome the Chancellors’ announcement the government were "actively considering" the possibility of extending the "successful" Funding for Lending Scheme with the Bank of England.

Osborne also said he would accept Michael Heseltine’s "excellent" proposal for "a single competitive pot of funding for local enterprise", although he did not reveal what that would entail.