Autumn Budget 2024: Manufacturing Predictions & Wish List

For the manufacturing sector, a detailed tax roadmap from the government, which sets out anticipated tax reforms and their implementation timetables, would provide much-needed clarity and and allow businesses to plan ahead for the investment that will be critical to their success.

By understanding the future tax landscape, companies can allocate resources more effectively, ensuring that they remain competitive while also contributing to the economy.

There should be confirmation that the full expensing regime, which allows businesses to invest efficiently in plant and machinery to drive future growth, will not be reversed.

The full expensing regime should be extended to include assets leased to other group companies, as they are currently excluded due to leasing restrictions, putting group companies at a disadvantage compared to standalone entities.

By providing clearer guidelines and definitions, the government can help more businesses make appropriate R&D claims, stimulating innovation across industries.

Additionally, fostering a more collaborative approach between HMRC and businesses would reduce the friction often associated with these claims, leading to a more efficient and effective process.

Delays and inefficiencies within HMRC can be a significant burden for businesses, particularly when it comes to processing tax claims, resolving disputes, or providing timely guidance.

Increased investment in HMRC services would help reduce these delays and improve service delivery.

The rapid pace of technological change means that businesses might be considering investment in advanced technologies such as robotics, automation, and artificial intelligence, in order to remain competitive.

Grants or incentives from the government would encourage more businesses to explore and implement these technologies.

There is a growing skills gap in fields like science, technology, engineering, and mathematics (STEM), which are critical to the future of the manufacturing industry, and many other industries.

Investment in STEM education is essential to ensure that the workforce is equipped with the practical skills needed to thrive in a rapidly evolving technological landscape, as well as help bridge the skills gap and ensure that businesses have access to the skilled workers they need to innovate and grow.

Many industries require shorter, focused training programs to upskill employees quickly in response to evolving business demands.

Reforms to the Apprenticeship Levy could help broaden the scope of training and make it available for use on shorter more modular training.