Higher taxes could force manufacturers abroad
A Black Country business leader is urging the Chancellor not to impose higher taxes on manufacturers in his Autumn Budget and risk some moving abroad.
Johnathan Dudley, partner and head of Manufacturing at national audit, tax, advisory and risk firm Crowe's Midlands office in Oldbury, said: My fear is that there will be even greater tax rises causing original equipment manufacturers to repurpose outside the UK."
Chancellor Rishi Sunak will deliver his speech in the House of Commons on Wednesday, October 27.
Mr Dudley said: "I hope to see existing Coronavirus Business Interruption Loan Scheme loans made portable to other lenders. It’s currently limiting further investment to just the companies who banks are more than happy to back. There is a need to foster a more entrepreneurial approach than that.
"Banks should be more actively encouraged to advance Recovery Loan Scheme loans in marginal cases. At present they have little desire or incentive to do so, with a big CBILS and build lending book with a good return, 75 per cent underwritten by the Government, already in place. There’s little incentive there to lend at present and so the RLS initiative is failing."
He is calling for a new Covid-19 loan set off scheme to be introduced with grant funding for new productivity rich investment, skills training, export promotion and reshoring initiatives.
He said that grant money rewarding positive corporate behaviour would support the Government's levelling up agenda.
"I would like to see similar for research and development expenditure to advance the benefit over the existing tax relief based time delays.
"It would be good to see the suspension of steel safeguarding quotas for all steel grades not currently manufactured in the UK above certain levels, based on quarterly production history and reviewable quarterly. This will ease pressure on UK manufacturing and incentivise UK steel producers to actually produce what’s in demand again," added Mr Dudley.
