Mark Minihane, EY UK & Ireland Advanced Manufacturing & Mobility Tax Leader, comments on the Budget’s impact on the manufacturing sector:
“Today’s Budget brought some good news for the manufacturing sector, with the announcement of eight new English Freeports that will help boost investment and growth.
“Manufacturing businesses will also welcome the super-deduction incentive for investing in new equipment, and will be eager for more detail on what exactly this will cover. However, the two-year period for the relief is a little disappointing.
“There was a lack of wider investment stimulus. There was also no mention of the patent box regime and no extension of the current R&D tax relief regime, although the announced review of the latter is welcome.
“While the Chancellor is understandably focused on COVID-19 relief, it’s important the UK is also positioned for long-term growth. A healthy and growing manufacturing industry could be the foundation for a post-pandemic recovery and a key part of the strategy for a post-Brexit world, while also creating skilled jobs throughout the supply chain. The sector will be hoping the 23 March tax consultations announcement provides further encouragement.”
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