South: EEF reaction to Budget – three cheers from manufacturing

Commenting on the chancellor’s Budget statement, Jim Davison, South East region director at EEF, the manufacturers’ organisation, said: “The chancellor gets three cheers from manufacturers today, particularly for the measures he included to boost exporters. His decision to bring forward compensation for industries facing vast and uncompetitive energy costs, such as steel makers, is also welcome but the full package needs to be put in place as soon as possible. In addition he has committed to a stable and competitive tax regime, which we wholeheartedly support and which should go down well with local businesses.”

Measures to help the oil and gas sector
“It is clear that the fall in oil prices has been a mixed blessing for manufacturing with firms exposed to delayed or cancelled investments in oil and gas exploration quickly feeling the effects through lost orders. Today’s announcement provides a solid signal from the chancellor that government stands behind greater levels of activity in this important sector.”

Annual investment allowance
“Recognition that action is needed on the level of investment allowances will be welcomed by manufacturers. This will ensure we don’t lose any momentum in the business investment recovery by withdrawing extra support through the tax system too soon. We now want to see a long-term solution to creating a stable and competitive regime for investment announced later in the year.

“In addition, it is good to see government continue to press ahead with support for world-class technologies with new investment in science and innovation infrastructure.”

Additional support for exporters
“Boosting the UK’s export performance is a national priority and the chancellor is right to keep the pressure on by providing additional resources to support exporters in overseas markets. This is another step in a longer journey to meet the Government’s £1trillion export ambitions and help cement a more balanced economic recovery.”

Business rates
“Looking ahead to the outcomes of the business rates review at Budget 2016, manufacturers will be looking for a system that is, above all else, stable and predictable. The commitment to expand the amount of money local councils can retain from their business rates growth is welcome news and will help to incentivise growth activities in all parts of the country that can do a deal with the Treasury.”

Changes to the R&D tax credit
“Further efforts to make the R&D tax credit more accessible for small claimants will be welcomed. This longstanding relief within the tax system has come to be valued by manufacturers for whom investments in R&D are becoming ever-more important for business success. If these changes can bring more companies into the scheme and encourage higher levels of investment in innovation, that can only be good for UK plc in the long run.”