Commenting on the Budget Statement, Stephen Phipson,
Chief Executive of Make UK, said:
“This budget was always going to involve tough choices for
business as the Chancellor grapples with the state of the
nation's finances whilst, at the same time, improving the
foundations of the economy. However, there is no escaping the
fact that raising Employer National Insurance contributions and,
the surprising change in thresholds, at a time of other
cumulative increases in employment costs will be challenging for
many businesses and especially SMEs.”
“However, looking at the bigger picture and, the medium to
long-term, we welcome the Governments clear path to growth
for manufacturing with a number of positive measures. In
particular, the commitment to an Industrial Strategy, the
Corporate Tax Road Map and, continued support for vital
programmes such as Made Smarter, are key elements of a growth
plan which will enable UK manufacturing to make significant
progress over the coming years.”
On the rise in Employers' National Insurance
Contributions, Verity Davidge, Make UK Director of Policy,
said
“This is a substantial increase in employers' costs and will
cause many to think twice about recruiting, make pay increases
for employees much less likely and, inevitably lead to some job
losses for working people.
“The rising costs associated with the National Living Wage,
apprenticeship levy and other policies over recent years already
risks hampering manufacturers' investment in their workforce.
This cumulative increase will send employers' costs soaring.”
On Industrial Strategy, Stephen Phipson, said:
“The UK has long been an outlier in not having a industrial
strategy at the heart of its economy. There can be no doubt that
advanced manufacturing now has a critical part to play in driving
growth across all regions of the UK. The commitment to a
long-term industrial strategy by this government is to be
celebrated. It will deliver growth, investment and high-quality
jobs.”
“After the announcement of the Industry Strategy Council,
Government now needs to move at pace to formalise the creation of
the individual sector groups so that the formal strategy and more
detailed plans can be brought forward.”
On the Corporate Tax Roadmap, Fhaheen Khan, Senior
Economist, said:
“Certainty and predictability are the bedrock on which investment
decisions are made. This is why the Government's commitment to
corporation tax policy will be a great comfort to many businesses
who have seen the tax burdens they shoulder grow heavier.
“By backing support for investment and innovation, R&D will
be at the centre of propelling UK industry forward and will
encourage businesses to proceed with productivity enhancing
projects with greater confidence. It is imperative we continue to
maintain a fine balance between existing tax burdens and the
relief for good decision-making creating opportunity in the high
growth areas of industry, such as automotive, aerospace and life
sciences. Manufacturers now proceed confidently knowing the
mission for growth is a clear and achievable objective.”
On Made Smarter, Nina Gryf, Make UK Digitalisation lead
said:
“Made Smarter has been championed by Make UK and industry for
seven years and is the only programme proven to be effective in
helping smaller manufacturing businesses boost productivity by
successfully adopting digital technologies. Today's announcement
that the programme's funding is being protected is good news for
Britain's manufacturers, helping ensure the sector can continue
to lead the way globally. “
“The programme helps companies choose the most effective digital
technologies for their individual needs. Without it, thousands of
SMEs would have been unable to take those first important steps
towards automation as the wider landscape of support for
industrial digitalisation is fragmented and difficult for
manufacturers to navigate.”
