As we approach the general election all the parties will outline their plans for supporting the manufacturing sector. Phil Inness, managing director of Axis Electronics tells us what he would like to see in a manifesto for manufacturing
‘A Manifesto for Manufacturing’ is a great idea and certainly the next government should have a credible plan.
We need a vision where manufacturing becomes a cornerstone of the UK economy, to create value adding jobs, to improve skills and to realise new technologies through high technology product realisation.
Building more and more of the right products and exporting them to generate gross domestic product (GDP).
Firstly let’s make all UK manufacturing the best in the world – to do this recognise we need smart people in manufacturing. Provide 100% funding on any manufacturing related training up to, say 5% of company turnover.
Greatly simplify the process so that companies can add all such expenditure and get a tax deduction on this spend. Do this right across all staff, from apprentices to company directors.
This would be a much simpler and more accessible process and remove the need for the costly infrastructure that manages the current hit and miss process. Remember, that a business loses the person, and their revenue generating potential, when they are being trained and we do not do this lightly.
Encourage entrepreneurs throughout the manufacturing industry to realise there is a long term future for them and the staff they will employ.
Remove the ‘Entrepreneurs Relief’ allowance cap for those that are in manufacturing.
Bring in more fresh blood by dropping university fees on science and technology courses.
Strengthen R&D tax credits for high tech and manufacturing companies promoting research into the best and newest processes – R&D is the lifeblood of industry.
Increase capital allowance for new manufacturing kit to 100% for a few years. This will help cash flow when investing in the latest equipment and help remove costly labour intensive steps.