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News Release from: Manufacturing Technologies Association | Subject: Manufacturing Technologies Association
Edited by the Manufacturingtalk Editorial
Team on 14 March 2006
MTA supports budget to boost UK SMEs
An improved climate - including 100% permanent capital allowances - to invest is key to reversing the eight-year decline in investment in UK manufacturing, said the MTA.
An improved climate to invest is key to reversing the eight-year decline in investment in UK manufacturing In its 2006 budget submission EAMA, of which the UK's Manufacturing Technologies Association (MTA) is a founder member, outlines key areas to make this happen
This article was originally published on Manufacturingtalk on 9 Aug 2004 at 8.00am (UK)
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Encouraging investment to sustain longer-term performance: through granting 100% permanent Capital Allowances to cover equipment needed by manufacturing companies as this would boost productivity and increase cash turnover of the engineering sector.
A 2% reduction in the Insurance Premium Tax (for SME manufacturing companies under SIC codes 15 - 37): to offset the fact the Employers Liability Insurance tends to be more expensive for these companies as they need more cover than most, and this particular insurance has been rising at a rate dramatically above that of inflation.
Reform of the Corporation Tax Structure: to help SMEs to grow their export activities, as last year this sector ran a positive trade balance of GBP 4 billion; Training: a training credit against National Insurance or an enhanced tax relief would make it financially easier for SMEs to train new staff.
Regulatory simplification: this includes drafting new regulations jointly with business; simplifies the forms it sends out and cuts the number of regulators.
Grants: EAMA research shows that three-quarters of their members would not have proceeded with R and D, export promotion, training etc without a grant.
Commenting on the submission, MTA director general, Andrew Manly said: "Our budget submission areas have been thoroughly researched and discussed with EAMA members and if implemented by Government would make a real and beneficial difference to SMEs manufacturing in the UK.
EAMA represents 1,000 UK companies within the mechanical engineering sector and we focus specifically in suggesting areas for reform in which SMEs have different or added pressures to larger companies to allow them to invest.
The six areas outlined above would in our view create a climate which would make investment by SMEs much easier, which in turn would benefit the prosperity of the UK.".
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