Commenting on the Autumn Statement, Stephen Phipson,
Chief Executive of Make UK, said:
“This was a bold statement by the Chancellor who has worked hard
to understand industry’s needs and deliver a transformational
strategy designed to turbo charge investment.
“Manufacturers will applaud this focus on addressing the painful
achilles heel that has troubled the economy for decades.
The biggest factor that companies want when planning
investment decisions is certainty in policy and this has now been
provided by making full expensing permanent.
“Industry will also welcome measures to boost engineering
apprenticeships and stimulate advanced manufacturing, which will
be vital in boosting high value growth and high skill employment
in the economy of the future.
“The Chancellor has worked closely with Make UK and promised an
autumn statement with manufacturing at its heart. He has
delivered on that commitment and it is now down to industry to
pick up the gauntlet.”
On full expensing, Fhaheen Khan, Senior Economist,
said:
“Making full expensing permanent shows the Chancellor is serious
about promoting business investment and bringing an end to
continual, short term policy sugar rushes in favour of a stable
and steady approach to improving productivity and growth.
“Manufacturing is the most investment intensive sector with the
majority of companies having long term cycles of five to seven
years. This change reflects that and will provide companies with
the certainty and stability they have long been craving for,
while making the UK a top five nation in its attractiveness to
global corporations who are looking for the best places to
invest.”
In a Make UK survey published in October, more than half of
companies (54%) said frequent changes to investment incentives in
recent years had deterred investment. By contrast, less than a
fifth (18%) said frequent changes had helped investment.
On the Harrington Review, Stephen Phipson, Chief
Executive of Make UK, said:
“This is a welcome report which reflects the fact that over the
last decade in particular, the world economy has moved on
substantially with other Governments taking a far more pro-active
approach to industrial strategies which are linked to big
investments. This is being reflected in ever fiercer competition
and, the economic prize it brings of growth, high value skills
and tax revenues.
“However, through a combination of factors, including previous
beliefs which are now outmoded, the UK has slipped down the
international league table and is missing out on valuable
investments from overseas. These bold recommendations, especially
a dedicated investment minister with cross government remit, are
a vital first step in changing the culture across government so
that foreign investment and, the benefits it brings, is given the
top level priority it deserves.”
On the Apprentice Levy, Verity Davidge, Director of
Policy, said:
“The Chancellor’s recognition of the value of engineering
apprenticeships is a vote of confidence in the manufacturers
across the country providing these opportunities. £50 million of
investment in a pilot scheme geared towards increasing the number
of apprentices in engineering and manufacturing, as well as other
growth sectors, is an important step forward in reversing the
recent decline in starts. It will also provide the right support
for the many manufacturers who have long called for better
support from the Government to invest in training. We look
forward to continuing our engagement with the Government on
taking this pilot scheme forward.”
On Investment Zones, James Brougham, Senior Economist
said:
“The Chancellor has listened to concerns held by industry that
the previous five-year time frame for fiscal incentives in
Investment Zones will be too short to maximise investment
potential. With today’s announcement that these will be extended
to ten years and the funding envelope for flexible spending
doubled to £160 million, the sector will be assured that the
Government is committed to a longer-term plan to boost
investment.
“Long-term business environment and policy confidence from the
Government is what the sector has needed to drive forward
investment and today’s announcement makes great strides towards
that goal.”
