Commenting on the Budget Statement by the Chancellor of
the Exchequer, Terry Scuoler, Chief Executive of EEF, the
manufacturers’ organisation, said:
“Current economic indicators offer the Chancellor confidence
about the resilience of the UK economy, but we remain some way
off from possible Brexit uncertainty. As such, the Chancellor is
right to be pragmatic, recognising the need to avoid jam today
and saving the fiscal jam tomorrow to use wisely if the economy
encounters turbulence during the process of exit from the EU.
“This statement shows government sticking with the challenge of
raising productivity levels in the UK economy, this alignment
with the industrial strategy priorities will be welcomed by
businesses as demonstrating signs of much-needed cross-government
coherence.
“While this Budget doesn’t have all the answers to our future
growth challenges, the evolution of the R&D tax credit,
action on digital infrastructure and regional road networks,
together with additional investment in technical skills and
lifelong learning is a solid foundation on which future
statements must build.”
On Business Rates, Terry Scuoler, added:
“Manufacturers will, however, be very frustrated by the positive
headlines that might be generated by the action on Business rates
which did not extend to the removal of plant and machinery that
could have added further to the overall productivity package.”
On proposals for Technical Education, , Head of Employment &
Skills Policy at EEF, said:
“This is a welcome first step towards finally putting technical
and academic education on a truly equal footing. It ticks all the
right boxes in terms of the emphasis on parity of esteem and
the need to radically simplify and streamline the current system
of qualifications which is overly complex and misunderstood by
students, teachers and employers.
“Government must now ensure this is truly new funding to the
skills system and that the technical qualifications which result
are designed and demanded exclusively by employers of all sizes.
Commenting on Full Fibre Networks, Ms Lee Hopley, Chief
Economist at EEF, said:
“With the transformation of industry as part of the 4th
industrial revolution, manufacturers attach a high degree of
importance to internet connectivity and have been vocal about the
impact on their businesses of using unreliable copper broadband
networks.
“The chancellor’s announcement that a fibre network will be built
by leveraging public sector buildings to serve as anchor
customers will help improve the viability and feasibility of new
fibre infrastructure, supporting the building of a reliable,
resilient and world-class fibre spine across the country.
Genuinely building out a fibre network alternative across the
country will come at an increased cost, the decision to rerun the
business voucher scheme will support building strategic
connections over longer geographic distances, as long as the
value of the voucher is increased to reflect this.”
On Business rates, Ms Lee Hopley, EEF Chief Economist,
said:
“While changes to reliefs and thresholds for the upcoming Rating
List will bring some comfort to businesses who were set to lose
out significantly, the continued lack of action in removing plant
and machinery from the business rates system will be noted by
industry.
“Despite today’s announcements on business rates, manufacturers
who invest in rated plant and machinery at any point during the
new Rating List will continue to be hit by an increase in their
business rates bills as a result of the Chancellor’s lack of
action on removing this today.”
On the R&D Tax credit, Ms Lee Hopley, EEF Chief
Economist, said:
“The Treasury used its recent review of the R&D tax
credit to reiterate its commitment to the scheme and keeping it
world class. Any incremental improvements to the scheme,
particularly to improve understanding and promote awareness to
new claimants has to be supported.
“However, keeping it world class will mean ensuring what
qualifies for the credit is aligned with the investment
priorities of manufactures, particularly in the context of the
fourth industrial revolution. The R&D tax credit makes a
difference to innovation and productivity for businesses, we
shouldn’t stop looking for ways it can do more on both
fronts.”
