EEF hails positive budget

The Chancellor has made a down payment on balanced growth says the EEF in response to the Budget statement.

Terry Scuoler, chief executive of EEF, the manufacturers' organisation said: “Today the Chancellor gave a clear recognition that we are in an international race for investment and that manufacturing is at the heart of this. He made a crucial down payment on creating a stronger and more balanced economy with measures to boost investment in technology, research and development, and skills. The Growth Review has now started to deliver tangible process in removing the barriers to growth, investment and job creation in the UK.

“However, for manufacturers, despite the encouraging measures on investment, the significant rise in energy bills threatened by the Carbon Price Floor is unwelcome. The next stage of the Growth Review must seek to develop a more co-ordinated and cost effective approach to creating a low carbon economy.”

The Chancellor himself put manufacturing at the heart of the Budget statement.

“We want the words: 'Made in Britain'; 'Created in Britain'; 'Designed in Britain'; and 'Invented in Britain' to drive our nation forward. A Britain carried aloft by the march of the makers. That is how we will create jobs and support families,” he said.

A change was announced to the tax regime for capital allowances that increases the benefits given to companies investing in the latest automated machinery.

Under the plan, companies can claim tax allowances under the short life assets election scheme within eight years, rather than the current four years.

This will make it less risky for manufacturers to invest in cutting edge kit.

Commenting on the changes to capital allowances, EEF director of policy, Steve Radley, said: “Government has recognised that the tax treatment of investment in the UK was antiquated. Extending the short life asset election is a simple way of recognising the true cost of modern machines with shorter lives. This will make the tax system more efficient and remove in part barriers to investment.”