EEF chief executive Terry Scuoler has called on Chancellor Philip Hammond to agree a fiscal package designed to stimulate investment and innovation in the manufacturing sector.
“By continuing to invest in improving key aspects of the business environment such as skills and infrastructure, while keeping down costs – such as energy prices – Britain’s makers will have more certainty about the UK as a place for their future activities,” he urged.
Scuoler was speaking as his organisation presented the Exchequer with its recommendations ahead of the impending Budget later this month.
The EEF said that, despite some growth in manufacturing, investment still lagged behind because of the uncertain political and economic climate caused by lack of clarity over the Government’s Brexit strategy.
Added Scuoler: “As business fully understands, the productivity stakes are high and investment in new technology and associated innovation in the industrial sector must get that extra nudge to equip companies to take advantage of growing global markets and anchor activity in the UK over the long term.”
Productivity stakes are high and investment in new technology and associated innovation in the industrial sector must get that extra nudge to equip companies
Terry Scuoler, chief executive, EEF
The EEF submission includes recommendations to:
Increase the rates of capital allowances to 30% for the first two years of qualifying investment for a five-year period
Cap increases in the business rates multiplier at 2% to minimise increases in business costs
Promote the benefits associated with Industry 4.0
Enhance supply chain cooperation on Industry 4.0 through collaborative funding via the Industrial Strategy Challenge Fund
Increase the rate of the R&D tax credit under the large companies scheme
Commented the EEF: “The Chancellor has to offset acute anxiety among companies over Brexit with a budget that reassures business the Government will deliver a comprehensive and ambitious industrial strategy.
“This is essential if we are to sustain long-term growth and accelerate the benefits of the fourth industrial revolution.”