Industry urges Chancellor to provide triple boost to economy

Manufacturers are urging the government to provide an immediate triple boost to industry in order to drive improvements in productivity and increased investment and make the UK a more attractive location for manufacturing.

The call will be made at the National Manufacturing Conference by Stephen Phipson, Chief Executive of Make UK, on the back of a snap poll of companies who were asked what action the Government should take immediately to make the UK a more attractive location for industry.

According to the poll, 70.7 per cent of companies want an increase in investment allowances, followed by over two thirds wanting a reduction in energy costs to the EU average, and almost half calling for an increase in R&D Tax Credits.

46.5 per cent of companies also called for incentives to boost the recruitment of Apprentices.

Stephen Phipson, Chief Executive of Make UK, said: “Low levels of private sector investment and poor productivity have been the Achilles heel of the UK economy for decades. One reason for this is the poor level of capital allowances compared to other countries, coupled with the inclusion of capital investment in the calculation of business rates.”

“Both of these act as a disincentive for manufacturers to invest and are a factor disproportionately impacting on companies in the Midlands and the North where industry has a high exposure.”

“December’s election has provided some much needed certainty and business is looking to respond to that in a positive and optimistic way. The new Government has an instant opportunity to provide a triple boost to investment and help reduce business costs.”

“This will help turbocharge the economy at a time when the economy needs it, and help deliver regional rebalancing and a faster growth.”