EFF, the manufacturer’s organisation has recently nodded at some of the latest policy announcements to have been made during a period when the wider manufacturing sector is already amidst a fairly turbulent time. Of the key concerns highlighted by manufacturers this year, one of the most major to be raised is the worryingly speedy rise in operational costs which may restrict the success of approximately 36% of manufacturers. Additionally, as an unfortunate partnership with these growing costs, the volume of organisations presently regarding the UK as a competitive marketplace has dropped to 56% from 70% back in 2015.
Some of the worrisome elements which EFF has highlighted includes a variety of things such as increased costs and complexities in energy-relative taxation as well as the newly announced levy upon apprenticeships. In a bid to re-balance the situation and support businesses presently operating in the sector, EFF has, in direct response, called upon the Chancellor to remove certain elements from business rate calculations, such as that of plant and machinery â both elements representing core assets in support of the wider manufacturing industry.
In addition, there are woes as to the government’s current stance on pension rules, with organisations pleading for employment pension contributions to continue as is, as opposed to lumping more penalties on companies who have a tried-and-tested dedication towards supporting workplace pensions. And, while some of these concerns may seem fairly minor individually, the EFF stresses that the combination of these varying different challenges may very well add significant costs during a period of severe economic uncertainty, effectively crippling the sector.
EFF’s Chief Executive, Terry Scuoler explained: We are concerned that the additional costs we face after just six months of this parliament could be the thin end of an ever thickening wedge. As such, he urges the Chancellor to re-evaluate the government’s stance of tax reforms and changes to fiscal policy as a means to outline a clear strategy for the industry so that it can continue to prosper.