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❓ Does the mini-budget and energy support package cut it?

Manufacturing Mondays
Manufacturing Mondays
The last two weeks have been nothing short of a whirlwind.
We saw an announcement of a business support package to tackle energy bills, as well as a mini-budget from the Chancellor outlining his Growth Plan.
Strap in folks, there is a lot to get through!
Happy Monday Manufacturing 

The not-so-mini Budget
👍 Things we like
Permanent increase to the Annual Investment Allowance of £1m: This is a major POLICY WIN for Make UK, providing much-needed certainty businesses have been seeking for the past two years, particularly for SMEs who will now be able to make long-term plans to invest in critical areas of their business, from automation to improving energy efficiency and self-generation. However, more work can be done to make the UK capital allowance regime even more attractive for domestic and international businesses alike.
National Insurance Contributions increase cancelled from 6 November onwards: Another POICY WIN for Make UK. This was always a tax on jobs which we had called illogical and ill-timed, and it seems like common sense has prevailed. The reversal will now see more cash in pockets for businesses and consumers.
Corporation Tax is frozen: We were due to see Corporation Tax increase to 25% from April next year but today the Chancellor announced plans to scrap that idea and instead keep it at 19% to make the UK a more competitive place to invest in. It’s good news but we would have preferred to see the Chancellor focus more on pre-profit taxes and hint at a more radical reform of the business rates regime which has been hampering business growth for some time.
Jury is out
New Investment Zones: They’re not Freeports, they’re not Enterprise Zones, they’re Investment Zone. On the one hand, you’ve got areas of opportunity for businesses that would benefit from business rates relief and enhanced capital allowances. On the other hand, it could run the risk of moving existing activity to other areas and worst case creating extra internal trade barriers.
HM Treasury, The Growth Plan, September 2022
HM Treasury, The Growth Plan, September 2022
⚡ And what about energy?
The announcement of a business support package to tackle energy bills was another huge POLICY WIN for manufacturers.
An energy price cap for an initial six months for all business users is welcomed, giving reassurance to the business sector and making immediately available the much-needed help Make UK has been calling for.
But it does appear likely that energy prices will remain high for many months to come so support may be required for a longer period if we are to protect jobs and remain competitive.
No getting away
But there is no getting away from one thing. This is the sixth growth plan in a little over a decade.
It has resulted in ever-increasing political uncertainty. This has resulted in zero certainty for business, the most important thing it needs. The new Government must try and reverse this process by working with industry to develop a long-term economic strategy together with a National Manufacturing Plan.
At its heart must be a properly designed tax system and a certainty of policy that aims to transform the low level of business investment.
Staying ahead
We were delighted to have teamed up with the folks over at Policy Mogul to help power our campaigning work. Whether it’s staying abreast of political moves, stakeholder mapping, or tracking legislation, Policy Mogul keeps us ahead of the game.
PolicyMogul is a powerful tech-driven political monitoring, influence and analysis platform. Launched as an alternative to traditional monitoring agencies and consultancies, PolicyMogul now helps hundreds of organisations stay ahead of government decisions and manage their public affairs work.
We’re delighted to offer a special price for new subscriptions to PolicyMogul, enabling others to keep up to date with the latest political developments related to engineering and manufacturing.
Make UK members can sign up for a free 14-day trial of PolicyMogul (no credit card required), and any organisation that subsequently subscribes will receive an exclusive 10% discount on their first year’s subscription, applied automatically. 
One last thing...
Our friends over at Onward have launched a new survey aimed at understanding the barriers that impact innovation in UK businesses.
If you’re a manufacturer, please share your thoughts and help shape their policy recommendations: http://ow.ly/2CNe50KQg0q
📌 Be the first to hear about our work: Linktr
Copy editor: Bhavina Bharkhada, Head of Policy & Campaigns
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Manufacturing Mondays
Manufacturing Mondays @MakeUKCampaigns

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