Budget ‘has to have growth as number one focus’, say manufacturers

Manufacturers are urging the UK Government to use the forthcoming Budget to focus on measures to boost growth, warning of the danger of any further increases in business taxes.

Make UK said its call followed its study showing that manufacturers’ business costs had already risen significantly this year in response to the increase in national insurance contributions (NICs).

Companies feared further burdens and costs from changes to inheritance tax and the looming implementation of the Employment Rights Bill, the report said.

Stephen Phipson, chief executive of Make UK, said: “Business is facing a potent combination of weak demand at home and abroad, as well as escalating costs across the board.

“If we are to get growth off the floor, then it is going to be business that provides it and this Budget simply has to have growth as the number one focus.

“In particular, energy costs are now an existential threat to deindustrialising the UK and we need to get them down as a matter of urgency.

“Government needs to stop sitting on its hands on the energy support scheme and continually kicking the can down the road hoping the problem will resolve itself. The scheme needs to be brought forward and backdated to when it was first announced.”