The Manufacturing Technologies Association have urged the chancellor to back Britain’s makers in his forthcoming budget.
The Manufacturing Technologies Association (MTA) the trade body that represent UK manufacturing technology suppliers, have urged the Chancellor to give more support to manufacturers in his forthcoming budget.
Manufacturing, like much of the economy, is in need of government support to assist with a speedy recovery from the impact of the Coronavirus pandemic.
The MTA CEO James Selka has written to Rishi Sunak to warn that: “failing to support such a vital sector of the economy threatened to stall progress on key national interest projects such as decarbonisation, high-speed rail (including HS2 and the Northern Powerhouse rail projects) and the new Tempest fighter aircraft.”
The MTA submission went on to highlight the need to keep fiscal incentives available for companies looking to invest in capital goods. The MTA successfully helped encourage former Chancellor Philip Hammond to increase the Annual Investment Allowance (AIA) from £200,000 to £1m back in 2018. However, that incentive is due to expire at the end of this year.
Data from the ONS shows that business investment fell by more than 30% in Q2 and while overall economic activity has been picking up, survey data on investment intentions suggests recovery will take longer. Concerns around a second wave of infections and the end of the Brexit transition period foster uncertainty.
The MTA has argued that extending AIA to 2024 and increasing it to £1.5m will “boost investment confidence and kick-start investment decision-making.”
Concluding his letter to the Chancellor, James Selka said: “Despite the current enormous challenges related to COVID-19 and other market changes, we believe that, with your increased support, UK Manufacturing has the strengths and capabilities needed to reinvigorate the UK economy and deliver the jobs and community growth needed across the nation.
“Government has already invested in key elements of infrastructure geared to keeping British businesses ahead of the market, such as the fantastic High Value Manufacturing Catapult Centres and the Made Smarter programme.”