Andrew England highlights what we could expect from the Chancellor’s Spring Budget 2024 this year, and what could benefit the Manufacturing sector.
What is our ‘Wish List’ for the Manufacturing Sector?
DIGITAL transformation & AI TECHNOLOGIES
Support for investment in digital transformation and exploration of AI technologies to accelerate productivity and delivery of business opportunities.
SKILLS & EMPLOYMENT SHORTAGE MEASURES
Despite sector average pay being 9% higher than other sectors specific skills and general employment shortages remain a significant challenge for the industry and measures to actively support this and effective upskilling of staff would be welcome.
REDUCTION IN NATIONAL INSURANCE
Employment costs are a substantial burden for businesses particularly given the increase to the National Living Wage, resource shortages and wage inflation over the last couple of years. So, a reduction to the rate of employer’s National Insurance would be welcomed (NB Make UK report suggests sector’s wages are 9% higher than rest of the economy with 2.6m jobs in the sector).
R&D
As an R&D intensive industry, manufacturers would like more clarity around research and development, particularly given the current concerns with HMRC’s approach in enquiries and the potential for a merged scheme to be rushed in without adequate thought and consultation.
Exports moving to CDS from 30 March 2024
The implementation of HMRC’s Customs Declaration Service (CDS) continues to press ahead, with declarations for all exports moving to CDS from 30 March 2024. This sees HMRC aligning its import/export system closely with the EU, in a move towards the Single Trade Window, in order to automate the import/export declaration process as much as possible and reduce the burden of administration.
If you have any queries regarding the above, or would like to get in touch with us to discuss how the Spring Budget could affect you, contact us below: