· Scrappage
scheme for old IT, plant and machinery equipment
· Scrappage
scheme for cars to boost household spending
Today Make UK highlights the case for Government to help
manufacturing recover from COVID-19 by implementing a new
scrappage scheme for old IT, plant and machinery equipment to
incentivise cash-strapped firms to invest in automation and
digitisation to boost output and exports.
The scheme should run hand-in-hand with a programme to
encourage UK consumers to buy a new, more environmentally
friendly car through a government-funded scrappage scheme,
delivering a much needed boost to the country’s automotive
industry. A voucher-style system where Government gave a
contribution of around £5,000 for each new car, would deliver a
healthy incentive for households to upgrade, with industry
contributing the trade-in value of the old model.
This double cash injection would give businesses the head
start they desperately need as they struggle to replenish their
decimated order books and get production up and running
again.
Up-front labour and raw material costs are proving a block
to many factories which have been forced to close or run on lower
capacity over the past few months since the pandemic outbreak.
Others which shifted to making much needed medicines, sanitizers
and vital medical equipment to support the NHS and combat the
spread of the disease also face considerable costs as they revert
their factories to normal production.
Stephen Phipson, CEO of Make UK, the manufacturers’
organisation said:
“The challenge faced by manufacturers as they start to
rebuild their businesses and bring staff slowly back into the
workplace is vast. Supply chains have been decimated and order
books are in the worst state in decades. To survive, businesses
will need to take every advantage they can of the latest
technologies and equipment to boost productivity to get back on
track in the coming months.
“Industry is grateful for the help Government gave them
during the crisis, but now as we come out the other side, we need
to look to them for innovative schemes which can help businesses
recover quickly, and building their technological armoury is an
important weapon in this battle. These initiatives will not only
help businesses get back on their feet, but would at the same
time tackle important environmental issues which are important to
Government as we work together to build a greener Britain fit for
the future.
“The UK’s manufacturing sector has always been agile and
has shown in the last few months just how quickly it can adapt
but as a growth providing sector we must emerge stronger and
better equipped to compete in the global trade environment to be
able to do our bit effectively in the country’s economic
recovery.”
Notes to editors
In 2009/10 Government ran a highly successful scrappage
scheme to encourage British drivers to purchase a new, more
environmentally friendly car or van.
