UK manufacturers decry government “gimmicks” and want tax cuts

John E. Kaye

Britain’s main manufacturing lobby, Make UK, told the government to stop “short-term gimmicks” and cut taxes for the sector, as its members reported a significant slowdown in orders and a nose-dive in investment. Make UK said it expected factory output to grow 2.3% this year – down from a forecast of 3% earlier in 2022 – and slow further to 1.7% in 2023, as manufacturers battled surging raw material costs and higher staff pay demands.

The Paris-based OECD forecast in June that Britain will see the weakest growth next year of any major economy other than Russia, as well as persistent inflation. Higher costs had led to a particularly big retrenchment in British manufacturers’ investment plans over the past three months, according to Make UK’s members.
Stephen Phipson, Make UK’s Chief Executive, warned of “very stormy waters” ahead and said years of “political chaos and uncertainty” since the 2016 Brexit referendum had also taken their toll on investment. “As a result, there is an urgent need to move away from the weekly roster of short-term gimmicks and put in place a long-term economic plan,” he said.

Britain’s government is raising the main rate of corporation tax next year, but has said it will review incentives for business investment before then, as a temporary Covid-era investment incentive is due to expire. Make UK said it wanted a 12-month reduction in business property taxes, value-added tax waivers, reductions in energy taxes and an extension of the investment “super-deduction” that will soon expire.
Further information
Make UK Website – https://www.makeuk.org/
Sign up to The European Newsletter
RECENT ARTICLES
-
XTI Aerospace launches Founders Club for TriFan 600 backers
-
New ranking measures how Europe’s biggest retailers report on sustainability
-
CEOs who endured childhood disasters show greater appetite for risky debt, study finds
-
Galorath appoints Julia Gerth to lead EMEA and APAC sales in global expansion push
-
UK to restart trade talks with China after seven-year pause
-
AM Best affirms Active Re’s ‘A’ rating for third year running
-
UK contract recruitment rises despite slowdown in permanent hiring
-
Forterro buys Spain’s Inology to expand southern Europe footprint
-
Singapore student start-up wins $1m Hult Prize for education platform
-
Nigeria’s startup scene takes global stage as Lagos hosts inaugural GITEX NIGERIA
-
City and Gulf investors track golf’s newest global venture
-
UK businesses increase AI investment despite economic uncertainty, Barclays index finds
-
French CEOs warn politics and geopolitics now threaten bottom lines, ESSEC study finds
-
Study links female-dominated classrooms to higher lifetime earnings for women
-
Inside London’s £1bn super-hotel with £20k penthouses, private butlers and a gilded eagle
-
Kia America hits record monthly sales as EV demand surges
-
Trump family’s crypto debut adds $5bn to fortune amid ethics row
-
Warren Buffett turns 95 – the secrets behind a $130 billion fortune
-
Most game developers now using AI in their workflows, Google Cloud study finds
-
BlackRock takes $89m stake in Freedom Holding, emerging as second-largest shareholder
-
Welcome to Britain’s most exclusive founders’ network with £1M entry bar
-
Portugal’s GR22 crowned Europe’s most rewarding hiking trail
-
Music faces a bum note without elephant dung, new research warns
-
Fermi America secures $350m in financing led by Macquarie Group
-
Cambodia to rename key highway after Donald Trump for brokering peace deal