2024 – A year of decision
2024 will almost certainly see a General Election and the MTA is already engaging with the parties to help them understand what manufacturers need as they draw up their manifestos for the next five years.
Manufacturers have had to deal with a lot in the last five years. The challenges of dealing with Britain’s changing relationship with the European Union, the pandemic and the outbreak of war in Europe have pushed manufacturers to the limits of their ingenuity. But they have overcome those hurdles and, the MTA believes, are well placed to thrive – providing that the Government can get the right support in place.
We need a high level of consistent political commitment, where business leaders and politicians work together to deliver sustainable economic growth to improve the UK’s standard of living now and in the future.
The right environment for growing manufacturing
We welcomed the Government’s Advanced Manufacturing Plan which showed that there is a recognition that we need a long-term approach to supporting manufacturers to achieve their potential. We also welcomed the Opposition’s broad support for the plan – reassuring us that whichever party forms the next Government, implementation will follow.
We welcome the commitment of £4.5 billion for support for dynamic and growing sectors but it is important that cross-sectoral enabling technologies, as well as companies operating in (often high technology) niche areas are not squeezed out by a focus on higher profile sectors.
The introduction of full expensing, alongside the Annual Investment Allowance, is the culmination of many years of campaigning by representatives of the sector, with the MTA at the forefront. We will now have a tax treatment for investment which is internationally competitive – for the first time in generations companies investing in Britain will not be doing so with one hand tied behind their back. It is essential that this is maintained.
The Harrington Review, published in November, made some valuable recommendations in respect of Foreign Direct Investment. The acceptance of those recommendations by Government, and indeed the Opposition, is a welcome step forward to providing an environment for FDI that is necessary if the UK is to continue to attract the levels it requires to compete in the global economy. The recommendations must be acted upon, and the focus needed to secure that goal maintained. Indeed, the pro-active approach espoused by the Harrington Review could be applied to increasing levels of investment by domestic companies – many of whom, particularly those with global operations, will face some of the challenges and decisions that Harrington identifies.
For more information, Read the full Manifesto here: MTA Cluster Manifesto