EEF have long said that tax reform needs to be central to rebalancing our economy.
But because of silly Whitehall turf wars, the good work coming from BIS on industrial activism and a manufacturing strategy has often existed apart from the realities of the tax system.
For example, the Strategic Investment Fund of £950m is being put to use to encourage investment in growing markets and supply chains.
But the capital allowance regime actively discourages manufacturing investment.
How?
Manufacturers replace their equipment, on average, ever 7-8 years. With a capital allowance level of 20%, the tax system only recognises that investment over 28 years. That gap raises the cost of investing in modern machinery in the UK. Looking across the tax system, you get similar disincentives to invest in manufacturing.
But at a speech on Monday night at a Progress event, Pat Macfadden, the BIS Minister linked the two issues of tax and industrial activism.
It was a first for the government and an extremely welcome recognition that building a balanced economy requires strategy that is implemented across government, not just by a forward-looking BIS department.