Stephen Morley, President of the Confederation of British Metalforming, takes a look back at a budget, which should help industry continue its recovery from Covid-19
“This was probably the most eagerly awaited budget in living memory given the huge effects of the pandemic and fall out from Brexit.
Our members wanted to avoid ‘Cliff Edges’ and increases in taxes following the events of the past year, so therefore it is pleasing news that the Furlough scheme has been extended until September, with the government still paying 80% of salary – though employers will need to provide 10% and 20% from July and August respectively.
This is the Government’s most successful scheme and its impact cannot be underestimated. Not only has it protected jobs and retained skills, but given millions of people hope that they can get through this pandemic, even more so now there is a potential end in sight.
Furlough has also provided our members with the flexibility to bring staff in as workload requires and an ability to plan cashflow to some extent going forward.
The Super Deduction for the next two years is a massive boost to investment in the UK, meaning businesses can claim 130% of their investment back against VAT. We needed a boost and we got it.
l believe this will give companies a huge incentive to spend and is exactly what we needed coming out of the pandemic and to drive the growth of the UK economy in the wake of Brexit.
The Chancellor has announced that the bonus for hiring all apprentices will be doubled to £3000 and this will definitely be a good thing for manufacturing. However, more targeted funding to tackle the bigger skills picture would have been welcome.
Most of our members would have expected a rise in Corporation Tax, but the increase being delayed until April 2023 will be seen as a positive. With the majority of our members classed as SMEs, the fact it will not impact companies with profits of £50,000 or less with a tapering up to those who have profits of £250,000, is also beneficial.
It’s a bit too early to assess the impact of the eight Freeports mentioned around the UK, especially as there was no timing for their introduction, but I’m sure they will be welcomed in the regions that will host them.
Another positive was that all companies can carry over short-term losses to the next financial year, so these can be offset against future corporation tax bills.”
Stephen Morley, President of the Confederation of British Metalforming, representing over 200 companies from the metalforming sector.
