Budget gets mixed reviews from manufacturers
The Chancellor's spring budget has received a mixed reaction from the manufacturing community, with comments ranging from 'right notes but no tune' to 'piecemeal'.
Stephen Tetlow, chief executive of the Institution of Mechanical Engineers, said that an ambitious industrial strategy to rebalance the UK economy was still lacking. "With British manufacturing growing by less than 1% in the past year we are still sorely lacking a bold, ambitious industrial strategy to rebalance our economy," he noted. "This Budget contains some helpful measures but it's a vision we need, not this piecemeal approach. We're hearing the right notes, but no tune."
Tetlow maintained, however, that some measures deserved to be welcomed. He continued: "Patent and R&D tax credits will help our most innovative industries, investment in North Sea oil and gas will help our position as a world leader in deep-sea exploration and a UK Centre for Aerodynamics will help our world-class engineers design and commercialise the next generation of aircraft."
Terry Scuoler, chief executive of EEF, said: "The chancellor began positively by setting out his thoughts for a new economic model. But, by the end of his speech, the task of rebalancing our economy looked as daunting as ever. Whilst there are some helpful measures, they fail to send a strong enough signal to growing manufacturers that now is the time to bring forward their investment plans and to do it here.
"The corporation tax cut is welcome but, on its own, it is not the silver bullet that will unlock the business investment our economy urgently needs."
Others welcomed the decision to review the Carbon Reduction Commitment, believing it should be abolished in the Autumn Statement, and expressed relief that the chancellor had decided not to further restrict higher rate tax relief on pension contributions.
A pledge of additional new resources for the R&D tax relief scheme was widely welcomed as providing a clearer incentive for manufacturers to invest in research.
Speaking about the new appointment of Michael Heseltine, who has been assigned to review modern industrial policy, EEF's Steve Radley, said: "The chancellor was right to say we shouldn't be shy about identifying our successful industries and reinforcing them, but we need to hear more about how all parts of government can pull in the same direction and work with the private sector to deliver it. This should be the top priority for Lord Heseltine in his review."
