Stephen Cooper, head of industrial manufacturing, KPMG UK responds to the 2017 UK Budget, saying: “It is concerning to see UK productivity flat-lining. The UK has suffered further declines in productivity since 2008/09 than most other advanced economies and that needs to change.
“On a more positive note, earlier in 2017 we learned that government support for R&D and investment in a better educated workforce was top of UK manufacturing executives’ wish list. The Chancellor has today gone some way in supporting both of these points, further efforts to encourage investment in R&D are to be applauded as is the action plan for supporting innovative start-ups. Other countries aren’t holding back on investment so neither can we.
“I am disappointed not to have heard more about encouraging foreign direct investment or measures to boost exporting. It is all very well investing in our transport system but we are really missing a trick if we don’t ensure that transport infrastructure helps businesses export faster and more efficiently.
“Finally, again, it’s great to hear the Chancellor champion T-levels, but this has been under discussion since April, it’s time to turn words into action.”
Manufacturing Technologies Association reacts to the Budget
James Selka, CEO of the Manufacturing Technologies Association, said: “We welcome the funding that is being made available for Research and Development in connection with the Industrial Strategy and look forward to the imminent White Paper. We also welcome the increase in the R&D Expenditure Credit for large companies from 11 to 12 per cent. The current pace of technological change means that we have a once in a generation opportunity to re-industrialise the UK’s economy.
“The enhanced role of UK Export Finance is welcome too but it is disappointing that the Chancellor did not take the opportunity to offer a boost to firms looking to break into emerging markets with extra support through the Tradeshow Access Programme. The UK is getting left behind on the world stage because our Government doesn’t back up industry as our competitors do.
“The Government has missed an opportunity to reform the way that the tax system treats capital investment. Our Capital Allowances regime is uncompetitive in relation to other countries’ systems and is putting us at a disadvantage when it comes to global investment decisions.”
Elsewhere, Stephen Dyson, head of Industry 4.0 at Proto Labs, commented: “We welcome the Chancellor’s commitment to increase the Government’s investment into R&D to support innovation and in-turn the future productivity of the UK.
“Our industrial, engineering and manufacturing industries will be bolstered by this investment, as will industry-specific research centres such as the National Automotive Innovation Centre. Continued collaboration between industry and research institutions will help to maintain the country’s competitive position going forward. This additional financing will also provide welcome support for businesses trying to encourage more young people to pursue careers within manufacturing.”
