HMRC requires all VAT registered businesses to comply with Making Tax Digital (MTD) for their first VAT returns beginning on or after 1 April 2022 –…
Ahead of the Chancellor’s Autumn Budget, James Robinson, Head of Manufacturing and Engineering at PKF Francis Clark looks at the importance of manufacturing in the UK economy and considers what manufacturers in the South West might like to hear from Philip Hammond on the 29 October.
Manufacturing is a key part of the UK economy, employing 2.7 million (up 145,000 from 31 March 2013) and accounting for ten per cent of UK output.
In the South West, alone, latest figures reveal that 247,000 people are employed in the manufacturing sector with output calculated at £14 billion annually.
But it faces great challenges, not least Brexit. Manufacturers, especially those relying on complex supply chains, desperately need clarity about our future intentions.
Another challenge is the skills shortage. The Royal Academy of Engineering predict the UK will need to hire 265,000 skilled workers in the sector every year until 2024 in order to keep up with technological demand.
The Budget provides the perfect opportunity to start addressing this, perhaps through further incentives and tax breaks.
There is some debate as to whether the Apprenticeship Levy is working as intended. Apprentice numbers are down and more needs to be done to attract the next generation to the exciting opportunities in the sector.
And let’s not forget Research & Development (R&D). Manufacturing accounts for 69 per cent of business R&D and is vital to keeping the UK at the forefront of technological change. Measures to incentivise businesses to invest in future technology would be very welcome.