Budget 2014: Manufacturing
By Kyle Lindsay
Monday, March 24, 2014 - 16:20
MEASURES: Budget praised
Last week’s Budget has delivered a series of key measures to support UK manufacturing, observers have claimed.
Chancellor George Osborne introduced measures to encourage exports and boost the UK supply chain in his address, while also doubling the Annual Investment Allowance to £500,000 and extending it to 2015.
Such moves, critics claim, will encourage businesses to invest further in plant and machinery.
The government have also committed to increase the R&D tax credit for loss-making SMEs from 11% to 14.5% from next month.
LeasePlan UK and the SMMT have reacted fairly positively to the Chancellor’s pledges…
‘It will help to ensure economic recovery is sustained’
David Brennan, Managing Director, said: “The pledge to support British manufacturing will help to address the need to rebalance the wider UK economy to ensure economic recovery is sustained.
“The automotive industry is at the forefront of the UK’s economic recovery, with car production by British automakers reaching 1.5million cars in 2013, the highest number since 2007.
“At LeasePlan UK, we hope that the significant increase in new car registrations will generate more interest from other manufactures to join the likes of Nissan, Toyota, Honda, BMW, General Motors and Tata Group’s Jaguar Land Rover to invest in UK PLC.”
Society of Motor Manufacturers and Traders (SMMT)
‘Focus welcomed by the automotive industry’
Mike Hawes, Chief Executive, said: “The Chancellor’s focus on investment, exports and skills, as well as reducing energy costs for manufacturing, is welcomed by the automotive industry.
“Extending and doubling the Annual Investment Allowance and improving export finance are important signals to encourage the UK’s manufacturing base, helping trigger greater business investment and enhancing our export capability.
“In line with welcome reductions in energy costs, we ask government to look at business rates to ensure the system works for manufacturing and maintain our global competitiveness.”