ADS Reaction to 2021 Budget
Commenting on the Budget presented by the Chancellor today, ADS Chief Executive Paul Everitt said:
“Our industries welcome the extension to furlough and support for apprenticeships, which offer a route for thousands to access high value careers in aerospace, defence, security and space.
“Measures to encourage investment like the new tax super-deduction will make a difference and the consultation on R&D tax relief is a welcome development.
“The lack of specific measures for aerospace and aviation through until the lifting of international travel restrictions is disappointing. Many SMEs in the aerospace supply chain need longer term and more patient finance, it is unclear how this demand will be met.
“UK aerospace can become a global leader in delivering future net zero flight, but must be supported to weather this crisis, sustain our capabilities and skills, and deliver future investment.”
Budget measures announced by Chancellor Rishi Sunak include:
- An extension to the Job Retention Scheme until the end of September this year, with employer contributions of 10% in July and 20% in August and September.
- A consultation on whether the UK regime for R&D tax relief is internationally competitive.
- A new "super-deduction" tax relief of 130% on business investment.
- Increased payments of £3,000 to employers who hire new apprentices between 1 April and 30 September this year, in addition to existing payments for all 16-18 year old apprentices and those aged under 25 with an Education, Health and Care Plan.