UK Autumn Budget 2023: Boosting Manufacturing Growth and Security
The UK Autumn Budget 2023 introduced several measures that are expected to have a positive impact on UK manufacturers, particularly in terms of security.
These measures include:
- Permanent full expensing: This allows businesses to write off the full cost of plant and machinery against their profits immediately, rather than over several years. This will encourage businesses to invest in new equipment and technologies, which can help to improve productivity and security.
- Investment in strategic manufacturing sectors: The government has committed £4.5 billion to support investment in key manufacturing sectors, including automotive, aerospace, life sciences, and green energy. This investment will help to create new jobs and boost the UK’s manufacturing output.
- Simplified R&D tax relief: The government has simplified the R&D tax relief scheme, making it easier for businesses to claim tax relief on their R&D expenditure. This will encourage businesses to invest in innovation and develop new products and services.
- Investment in critical infrastructure: The government is investing in critical infrastructure, such as energy and transport, to support the transition to net zero and boost business investment. This will help to create a more secure and resilient manufacturing sector.
In addition to these specific measures, the government’s overall focus on growth and investment is expected to create a more supportive environment for UK manufacturers. This will help to promote innovation, improve productivity, and enhance security across the sector.
Here are some specific examples of how the Autumn Budget measures could benefit UK manufacturers:
- A manufacturer of automotive components could benefit from full expensing by writing off the cost of a new production line immediately. This would free up cash flow that could be invested in other areas of the business, such as research and development.
- A manufacturer of aerospace equipment could benefit from the investment in strategic manufacturing sectors by securing funding for a new research and development project. This project could lead to the development of new technologies that could give the company a competitive edge.
- A manufacturer of life sciences products could benefit from the simplified R&D tax relief scheme by claiming tax relief on a wider range of expenditure. This could help to offset the cost of developing new treatments and medicines.
- A manufacturer of green energy products could benefit from the investment in critical infrastructure by securing a contract to supply a new power plant. This would provide the company with a long-term source of revenue.
Overall, the Autumn Budget 2023 is expected to have a positive impact on UK manufacturers by providing them with the necessary support to invest in growth, innovation, and security.