As part of the Autumn Budget round and the Comprehensive Spending Review (CSR) that is underway in Government, we wrote this week to the Chancellor of the Exchequer urging him to use his Autumn Budget to bolster the manufacturing sector as it looks to make a speedy recovery from the impact of the COVID-19 pandemic.
In the letter, MTA CEO James Selka DL said 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. To deliver the stimulus needed to progress these and other key projects, Mr Selka said that positive action would be vital to restarting the UK economy and putting Britain’s manufacturing companies firmly in the vanguard.
The three main points in the letter were:
- To extend the enhanced Annual Investment Allowance (which is due to revert to just £200,000 from £1 million at the end of 2020) to 2024 and to raise the threshold to £1½ million.
- Strong support for the skills retention and development needed to exploit new investments – we advocated a scheme similar to the Kurzarbeit used in Germany as this gives employers long term confidence to retain and develop their people.
- Improved access to the tools of risk mitigation during disruptive events such as global pandemics – there is an urgent need for Government to correct a serious market failure in the insurance market where suitable cover is simply not available and this is a crucial blocker to investment and, of course, events like MACH which are so important to showcasing the best of British industry.
You can read the MTA Press Release on this letter at https://www.mta.org.uk/news/press-release/mta-urges-chancellor-support-uk-manufacturing-autumn-budget. The letter itself is also on that page or you can download this below - any support you can give this by writing to your MP would be appreciated.