Chancellor urged by EEF to give UK manufacturing a boost with autumn budget
The manufacturers’ organisation, EEF, has submitted a call to the chancellor to use the forthcoming budget to boost investment and improve industry competitiveness.
This call comes as even though there is current positive growth in manufacturing as a result of strong global trading conditions, investment is still subdued in comparison to other activity indicators. Some of the reasons behind this include a need for clarity on Brexit outcomes and the availability of a range of skills to manage and implement new technologies.
The organisation stated that improving manufacturers’ confidence to invest is critical to improving productivity performance and avoiding UK companies needing to catch up with competitors.
“The chancellor has to offset acute anxiety among companies over Brexit with a budget that reassures business the government will deliver a comprehensive and ambitious industrial strategy. This is essential if we are to sustain long term growth and accelerate the benefits of the fourth industrial revolution,” commented Terry Scuoler, chief executive of EEF.
“While the white paper should provide the bones of a framework for all parts of government to enable the growth ambitions of businesses, the budget statement must start to put on some of the flesh. By continuing to invest in improving key aspects of the business environment such as skills and infrastructure, while keeping down costs — such as energy prices — Britain’s makers will have more certainty about the UK as a place for their future activities.
“As business fully understands, the productivity stakes are high and investment in new technology and associated innovation in the industrial sector must get that extra nudge to equip companies to take advantage of growing global markets and anchor activity in the UK over the long-term.”
In a statement, EEF listed its recommendations to boost investment and innovation:
- Increase the rates of capital allowances to 30% for the first two year of qualifying investment for a time limited five-year period.
- Cap increases in the business rates multiplier at two percent to minimise increases in business costs.
- Promoting the benefits associated with the fourth industrial revolution through demonstrators.
- Enhance supply chain cooperation on 4IR innovation and adoption through collaborative funding as part of the Industrial Strategy Challenge Fund.
- Increase the rate of the R&D tax credit under the Large Companies scheme.
Furthermore, EEF confirmed its priorities to continue to improve the skills base, infrastructure and minimise industry costs burdens as part of industrial strategy delivery:
- Consult with business organisations on a new business impact target.
- Immediately announce how revenues from the Immigration Skills Charge will be spent.
- Announce a fund to effectively deliver Industrial Energy Efficiency investments.
- Announce provisions for the Mayoral infrastructure supplement.
- Outline a three-year plan to prioritise spending by the Department for International Trade on export promotion and trade policy.