Budget Response: Welcome Steps From Chancellor Help Industry Plan For Uncertain Future
In today’s Budget statement the Chancellor took important steps to help industry sustain investment and productivity improvements as they face uncertainty over the UK’s economic future after our departure from the European Union.
The Budget introduced significant welcome measures for industry including:
- New funding worth £1.1bn for the Industrial Strategy Challenge Fund, supporting investment in industrial productivity.
- Increased funding of £1bn to the Ministry of Defence that will boost cyber-security and anti-submarine capabilities, plus £160m in additional funding for counter-terror policing.
- An increase in the Annual Investment Allowance from £200,000 to £1m for two years, supporting business investment by smaller companies.
These announcements and others such as those providing support for smaller companies creating apprenticeships and extending business rate relief make a positive start in helping small businesses to address potential problems in cashflow after Brexit.
However, the Chancellor has already warned that a failure to agree a deal with the EU over Brexit would require today’s plans to be revisited. In the event of a no deal Brexit, businesses in our aerospace, defence, security and space sectors will need further action and reassurance.
ADS Chief Executive Paul Everitt said:
“Today’s Budget takes positive steps to help industry maintain investment, support future productivity improvements and work with the Ministry of Defence to boost the UK’s national security.
“We welcome the new £1.1bn investment announced for the Industrial Strategy Challenge Fund. We hope some of this extra investment will support ground breaking research into high value design and urban air mobility.
“Measures announced on investment allowances, business rate relief and apprenticeships are an encouraging down-payment on steps that will be needed to support smaller companies through the cashflow crisis that could follow a chaotic Brexit.
“The threat of leaving the EU with no deal is a drag on our economy and the Treasury should stand ready to take further steps if needed to make sure small companies are able to sustain their businesses through any period of turbulence.”