FLA publishes 2024 Manifesto

The Finance & Leasing Association (FLA) has today published its 2024 Manifesto.

The Manifesto highlights the significant contribution made to the economy by FLA members in 2023, with member companies providing £151 billion of new finance to UK businesses, households and the public sector.

Of this total, £63 billion was provided by non-bank lenders. £38 billion was provided in the form of asset finance to businesses – £23 billion of which went to SMEs to fund new equipment, plant and machinery, or purchased software. £113 billion was provided in the form of consumer credit, which includes £52 billion of motor finance.

The Manifesto also notes how this contribution to the economy could be further increased by better regulation, improved access to finance and the removal of barriers so that green investment becomes the logical choice for businesses and consumers.

The FLA notes that the Consumer Credit Act (CCA), which has been on the statute book since the 1970s, is now an impediment to business and inefficient for consumers. Modern markets require modern regulation. Having persuaded the Treasury of the need to reform the CCA, the FLA want to see this remain a priority in the next Parliament.

For the FLA, access to finance is as much about the diversity of lenders as it is about financial inclusion, because healthy markets create choice and foster competition. However, when too many consumers are denied access to the market because of overly strict affordability criteria, and lenders exit because the regulatory burden no longer makes financial sense, there is no benefit to anyone.

While Net Zero is currently off the political agenda in favour of more vote-winning issues, the fact remains that the 2050 commitment is legally binding. The FLA’s Manifesto pulls together practical measures to boost the green transition – including the need for a taxonomy of green assets so that businesses can invest with confidence.

Stephen Haddrill (pictured), FLA Director General, said: “Our recommendations on regulation, access to finance and Net Zero would improve the business environment for members, restore the ability of more people to manage and smooth their finances, and position green investment as the feasible choice – logical in terms of the need to transition, and affordable.”

The FLA’s 2024 Manifesto can be found here.