What's Happening?
Make UK, representing Britain's manufacturers, has issued a warning to the government regarding the potential deindustrialisation risk posed by further increases in business taxes and high industrial energy
costs. The organization is urging the government to focus the upcoming Budget on growth measures. Manufacturers have already faced increased business costs due to higher National Insurance Contributions and are concerned about additional burdens from changes to Inheritance Tax and the Employment Rights Bill. Make UK is advocating for several measures, including expanding the British Industrial Competitiveness Scheme, ringfencing funds from the Growth & Skills Levy for skills investment, and providing targeted exemptions for green technology investments.
Why It's Important?
The concerns raised by Make UK highlight the potential impact on the manufacturing sector, which is crucial for the UK's economic stability and growth. Rising business costs and energy prices could lead to reduced competitiveness and deindustrialisation, affecting jobs and economic output. The proposed measures aim to alleviate these pressures and support the sector's growth, which is vital for maintaining the UK's industrial base and preventing job losses. The government's response to these calls could significantly influence the future of the manufacturing industry and its contribution to the economy.
What's Next?
The government is expected to address these concerns in the forthcoming Budget. Key stakeholders, including manufacturers and industry leaders, will be closely monitoring the government's actions and any announcements regarding tax policies and energy cost reductions. The implementation of Make UK's proposed measures could lead to increased investment in skills and green technologies, potentially boosting the sector's growth and sustainability.
Beyond the Headlines
The broader implications of this situation include potential shifts in industrial policy and the prioritization of sustainable practices. The focus on green technology investments aligns with global trends towards sustainability and could position the UK as a leader in environmentally friendly manufacturing. Additionally, addressing energy costs and tax burdens could enhance the sector's resilience against economic fluctuations.
