Your views: Will the Budget help or harm the process sector?

London - Despite measures to improve the status of UK process engineering and put the country at the forefront of low-carbon technology, Chancellor Alistair Darling's has attracted a very mixed reaction for his 2009 Budget.

Budget measures included support for sectors such as advanced manufacturing, biotechnology and renewable energy; £523m for the offshore wind industry and up to four carbon capture demonstration projects; over £400m to advance green manufacturing and £760m for emerging technologies. However, the general view seems to be that such moves will not spark a major shift in the fortunes of UK industry.

Typifying industry reaction, EEF chief executive Gilbert Toppin acknowledged that given the dire difficult situation, the Chancellor had not gone far enough to alleviate the short term pressures facing companies and appeared to ofer little new money in the low-carbon area.

Meanwhile, Petra Wilson, director of Research and Policy at the Chartered Management Institute, said: "We are concerned that the focus on high-technology, and particularly high-growth areas, will undermine our core manufacturing industry. Key people in manufacturing, such as machine tooling companies, that contribute quite a lot to our carbon emissions will need just as much support as newer technologies."

How do you think the Budget will impact the process engineering sector and what is your outlook for the 12 months ahead?

Please email your views to: patrick.raleigh@centaur.co.uk

 

British Plastics Federation statement:

The BPF's recent lobbying work has borne fruit in the 2009 Budget. Following BPF communications directly to Chancellor Alistair Darling and BERR Minister Ian Pearson the Budget incorporates the BPF's recommendation that CCA's based on electricity only be introduced.

Peter Davis, BPF Director-General sais: "This gives the BPF's attempts to secure a CCA for plastics processing a second chance and the BPF is now in a good position to resume discussions with DECC and the EU."

Also directly attributable to BPF lobbying was a freeze on the Climate Change Levy Rate and the 40% increase in capital expenditure allowances, both of which were key points in a letter sent to the Chancellor on 18 Feb by the BPF and 12 other manufacturing associations.

The plastics sector will further benefit from the car scrappage scheme which should create some improvement in the market and the measures to boost the housing market. Plastics are low carbon materials produced by a low carbon industry and should be major beneficiaries of the variety of measures to stimulate energy efficiencies. BPF will be fighting to secure a fair share of the strategic financial support for emerging technologies.

"Plastics has the potential to fulfil the criteria for 'advanced green manufacturing and will play a pivotal role in assisting the transition of the UK economy to one centered on high-tech production," said Davis.

However the BPF felt that the Chancellor should have done much more to put the government's own house in order. The £9 billion in efficiency savings set against total government expenditure is relatively small. At the very least a freeze on public sector recruitment on new positions should be introduced and vacancies should not be filled except for front line jobs such as firefighters and nurses. The highly controversial subject of public sector pensions is still a thorn that needs to be grasped.

Obtaining Credit Insurance is a serious problem for many plastics companies.

The BPF feels immediate action is needed and we do not see this in the Chancellor's statement.