MANUFACTURING
West Midland manufacturers were not holding their breath ahead of this week’s Budget but many found themselves pleasantly surprised by some of the skills and tax measures announced.
A reduction in corporation tax and moves to support education and job creation through new university technical colleges and thousands of extra apprenticeships were welcomed in the region.
The Government is set to bring the rate of corporation tax down to 23 per cent, create 24 colleges nationwide provide technical training opportunities to 11 to 19-year-olds and release a £180 million package to fund 50,000 new apprenticeships over the next three years.
Gerry Dunne, managing director of Birmingham-based component firm Westley Engineering, said there were several good points in the Budget from a manufacturing point of view
“We certainly welcome the reduction in corporation tax and I’m sure all businesses will agree,” he said.
“The reduction in fuel duty is also welcome. However, we need to remember they only put it up last year by increasing the VAT up to 20 per cent.
“Similarly, the increase in the mileage allowance is a small help but it’s important to remember fuel has increased by about 35 per cent this year.”
He added: “The announcement about 12 new university technical colleges, increasing to 24, is also a step in the right direction.
“These are really what previously existed in the shape of polytechnics so it is effectively going back to what we had many years ago.”
