Various options are under consideration, including increasing the permanent level of the annual investment allowance, increasing the rates of writing down allowances, and the introduction of general first-year allowances (FYAs) for qualifying expenditure on plant and machinery, an additional FYA and permanent full expensing.

According to OECD data, UK companies invest just 10% of GDP each year, compared with 14% in competitor countries, illustrating that the tax system does not reward investment as much as other countries do.