Budget 2014 Wishlist for Manufacturing and Engineering
Ahead of Wednesday’s budget, Moore and Smalley’s sector experts give their predictions and say what they would like the chancellor to do.
“Manufacturers are entering a critical stage as the economy moves towards recovery,” says Ginni Cooper, head of the manufacturing team at Moore and Smalley.
“They must avoid the potential danger of over trading or over gearing the business with debt as they work to fulfil orders. Therefore the chancellor needs to do everything he can to ensure they are given the best possible chance to succeed and get the economy back on track.
“Top of the priority list is the need to address the Annual Investment Allowance. To allow this to drop from £250,000 to £25,000 at the end of this year would seriously discourage manufacturing and engineering businesses from investing in new plant and machinery, potentially jeopardising job creation and the economic recovery.
“Energy prices in the UK are rising much faster than elsewhere in Europe, which is squeezing margins and putting UK manufacturers at a competitive disadvantage. I would like to see something done in this budget to reduce what is one of their biggest overheads.
“Also, we keep hearing George Osborne talking about boosting exports, but in recent days we’ve seen UK exports hit a 19-month low. I’d like to see some tangible measures to assist in this area.”