Given the difficult economic circumstances the Chancellor faced, as well as the intense speculation, the Budget was a case of two steps forward and one step back for manufacturers, says Make UK, the manufacturers’ organisation.
A spokesperson for MakeUK said: “On the upside, companies will welcome the decision to expand capital allowances for leased equipment and greater investment in apprenticeships for SMEs. Funding for skills, business support and infrastructure, targeted at the Regional Mayors, will also help support growth.
“The Chancellor should also be commended for her personal intervention to kickstart the consultation on the business energy support scheme, which is vital if we are to address the UK’s eye-watering and uncompetitive industrial energy prices.
“On the downside, however, restricting tax relief on salary sacrifice and a further increase in the National Living Wage mean that manufacturers are again facing greater barriers to successful recruitment and retention of skilled staff. The electric vehicle road tax will also potentially hinder their adoption and damage an automotive sector already facing a challenge to meet its EV targets.
“Overall, the government came to power promising that growth was going to be its number one mission, and while it was dealt poor cards, we have yet to see any significant upswing in our economic performance and productivity.
“It is the private sector that will provide this growth and create high-value, high-skilled jobs, and while the industrial strategy was a major signal of intent, we need to see a much stronger focus on delivery.
“The need to take difficult decisions regarding the UK’s ballooning welfare bill also remains, given the impact on debt levels. So long as not just the government but, the country, keeps kicking the can down the road hoping this problem goes away, then it’s hard to see how the government will get out of the doom loop of debt and economic stagnation and the need to come back in a years’ time with further tax increases.”
