Enterprise measures tick the boxes but lack of tax strategy fails to impress say manufacturers

Release date: 12/03/2008

EEF, the manufacturers’ organisation gave a mixed reaction to today’s Budget statement, welcoming the measures announced as part of the Enterprise White Paper but, expressing disappointment at the lack of any announcement on the future direction of tax policy.

Commenting, EEF Chairman, Martin Temple, said:

"The innovative package of measures designed to promote enterprise will tick many of the boxes for manufacturers and will go some way towards restoring the government’s reputation in this area. We will however want to see clear evidence of delivery.

"But, the lack of any announcement on the future direction of business tax strategy failed to impress. The UK’s tax competitiveness is heading in the wrong direction and this still needs to be addressed if other positive measures are not to be undermined."

On the Enterprise White Paper EEF especially welcomed:

Proposals for a new system of regulatory budgets for government departments

the independent review of official guidance to firms which was an area of concern raised specifically by EEF

measures to improve access to finance which EEF had called for in its Budget submission, including strengthening the Small Firms Loan Guarantee Scheme, and the additional £30m for Enterprise Capital Funds

the package of measures to promote enterprise among women

a commitment to Small and Medium Size companies gaining a greater share of government procurement contracts

Climate Change

However, on measures to tackle Climate Change, EEF criticised the lack of any clear long term strategy to maximise business opportunities from a low carbon economy and change the behaviour of individuals. EEF especially criticised the absence of any increase in public funded R&D on Climate Change measures.

Martin Temple added:

"Given the vital importance of moving to a low carbon economy, the statement was short on ideas of how we maximise business opportunities and institute the step change in behaviour necessary from individuals. It remains difficult to understand why there was no commitment to increase substantially the amount of public funded R&D on low carbon technology projects which remains amongst the lowest in the EU."

ENDS

Notes for editors

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