Public sector finance

In 2024 the UK government adopted new accounting rules that enable Local Authority-maintained schools*to finance assets and equipment via fixed-term finance leases. This enables schools to spread the cost of new equipment over time, reducing upfront costs, conserving cash, and improving the balance sheet by spreading fixed repayments over the useful life of the assets.

Assets for schools, colleges and universities

Examples of assets that can be leased by schools include:

• IT equipment (e.g., laptops, tablets, desktop computers, printers, photocopiers, servers, door entry security systems, CCTV Systems, whiteboards, and touchscreen boards)
• Telephony (e.g., mobile phones, landline phones and telephone systems)
• Catering and cleaning equipment (e.g., tills, water coolers, vending machines, dishwashers, washing machines, ovens, fridges, freezers, water, boilers, small kitchen appliances)
• Furniture (e.g., desks, tables, and chairs)
• Bathroom and sanitary items (e.g., hand dryers, towel dispensers, sanitary bins)
• Gym equipment (e.g., treadmills, free weights and weight machines, rowing machines and exercise bikes)
• Groundskeeping equipment (e.g., lawn mowers, string trimmers, leaf blowers and salt spreaders)
• LED lighting system (e.g., lightbulbs, control mechanisms and control panels)
• Minibuses and other vehicles for the use of the school
• Temporary classrooms and equivalent structures

*Fixed term finance leases on the above assets will be available to academies from 1st September 2024.

Healthcare organisations can use asset finance to acquire medical equipment, vehicles and property with minimal upfront costs. Benefits include flexible payments, preservation of cash, tax savings, and access to the most up-to-date equipment. The impact will lead to improved patient care, streamlined organisational efficiency and greater overall success.

Assets for healthcare

Examples of assets for the education sector include:

• Medical equipment (e.g., CT scanners, X-ray machines, dialysis equipment).
• Vehicles (e.g., ambulances, patient transport vehicles, mobile clinics).
• Property (e.g., medical facilities, clinics, hospitals).
• IT systems and technology (e.g., electronic health records (EHR) systems, telemedicine equipment).
• Furniture and fixtures (e.g., hospital beds, exam tables, patient chairs).

Asset finance can provide social care companies with greater flexibility, better access to equipment and improved cash flow, enabling them to deliver high-quality care to their clients and grow their operation.

Assets for social care

Examples of assets for the social care sector include:

• Medical equipment e.g., hoists, patient lifts, specialised beds, pressure care systems, and other medical equipment needed to provide care for clients.
• Vehicles e.g., vehicles to transport clients or staff, such as adapted minibuses, ambulances, or wheelchair accessible vehicles.
• Technology e.g., software, telecare systems, and other technology to improve the quality of care provided to clients.
• Furniture and fixtures e.g., furniture, fixtures, and fittings to create a comfortable and safe environment for their clients.
• Refurbishment and building work: fund refurbishment or building work to create or upgrade care facilities.

Asset finance can be an attractive option for organisations in the housing sector, providing a range of benefits including improved cash flow management, access to larger amounts of capital, flexible repayment options, tax benefits, and the ability to preserve existing credit lines.

Assets for housing sector

Examples of assets that can be acquired using this type of financing:

• Property e.g., finance the purchase of property, such as commercial real estate, including both new construction and existing properties.
• Plant and Machinery e.g., finance the purchase of plant and machinery that are required for construction, renovation, or maintenance of property. This can include items such as excavators, cranes, scaffolding, and other construction equipment.
• Vehicles: e.g., vehicles for transportation and logistics, such as vans, trucks, and trailers. Asset finance can be used to finance the purchase or lease of these vehicles.
• Fixtures and Fittings e.g., finance the purchase of fixtures and fittings required for property development or renovation, such as plumbing and electrical fixtures, flooring, and lighting.
• Furniture and Appliances e.g., finance the purchase of furniture and appliances required for rental properties, such as kitchen appliances, sofas, and beds.

By utilising financing, local authorities can manage their cash flow more effectively, access larger amounts of capital, and preserve their existing financial resources.

Assets for Local Authorities

Examples of assets that can be acquired using this type of financing:

• Vehicles: lease or purchase a fleet of vehicles for transportation and logistics, such as cars, vans, trucks, and buses.
• Property: finance the acquisition or construction of property, such as offices, community centres, and social housing. This can also include the renovation or refurbishment of existing properties.
• IT Equipment: finance a range of IT equipment to support their operations, such as computers, printers, and servers. Asset finance can be used to finance the purchase or lease of this equipment.
• Renewable Energy Systems: finance can be used to finance the installation of renewable energy systems, such as solar panels, wind turbines, and energy-efficient lighting to enable local authorities to reduce their carbon footprint.