ADS Budget wins on the Annual Investment Allowance will help SMEs and Midcaps invest in UK
On today’s Budget Paul Everitt, Chief Executive of ADS Group says:
“Today’s Budget demonstrates the Government’s commitment to increasing productivity and boosting national prosperity. Productivity across the sectors represented by ADS Group – aerospace, defence, security and space - has grown by 30 per cent, this compares with just four per cent across the wider economy.
“Supporting business investment in innovation, skills and new plant and equipment will help UK industry compete in increasingly fierce international marketplaces, securing jobs and prosperity.”
On the two per cent of GDP to defence and security budgets:
“The Government’s commitment to the two per cent NATO target for defence spending will reassure our international allies and send an unambiguous message to those that threaten UK national security.
“It is essential the Strategic Defence and Security Review sets out clearly how the Government will invest in and develop the UK capabilities critical to meeting the threats to our national security.”
On the rise in the Annual Investment Allowance from 2016:
“Raising the Annual Investment Allowance has been a top priority for ADS’ members. Following today’s Budget, it is now set at £200k, this is great news for the UK supply chain and will reduce the cost of investing in new technologies and additional capacity in the UK. The increase in the allowance and the commitment to maintain it for the long-term provides the certainty industry needs to raise investment."
On Apprenticeship Levy for large businesses:
"The UK’s Aerospace, Defence, Security and Space sectors already employ more than 9,000 high-quality apprentices and are increasing their investment to make sure they have the skills needed for the future. The introduction of an apprenticeship levy signals a significant change in approach and will need careful design to ensure it encourages all businesses to offer the high quality apprenticeships our economy needs.”
Productivity plan:
“The sectors represented by ADS have outpaced national productivity levels boosting the economy and generating more high-skilled, well-paid employment.
“The Government’s Productivity Plan is a good start to addressing the UK’s chronic productivity gap. The focus on investing in infrastructure and skills should now be complemented by building on the successful long-term industrial approaches in high-productivity sectors and by increasing investment in Industrial Innovation in the upcoming Spending Review.
“Long-term investment in leading-edge technology development is a clear way to boost productivity and rebalance the economy, enabling UK firms to deliver greater output and to successfully compete for work in increasingly fierce international markets. It also creates a stable climate something which is attractive to valuable foreign investors.”