Engineering and manufacturing body the EEF has accused the Government's taxation plans of being without “direction and predictability”.
It was responding to this week’s Budget, the last before the General Election, which did include a series of tax incentives aimed at supporting small companies and manufacturers.
See blog: Budget 2010: Industry forced to play waiting game
It was felt that the tax measures such as the changes to Capital Allowances, while of benefit will do nothing to address the real issue which is by uncertainty about what tax and spending decisions may be around the corner.
“Frequent changes to the taxes such as those to investment incentives compound the view that the tax system lacks direction and predictability,” said chief economist at the EEF, Lee Hopley
In the area of building on the UK’s strength in low-carbon technologies such as off-shore wind and wave power generation, there was a sense that more should be done.
“The UK needs significant investment in low-carbon energy infrastructure, and the Green Infrastructure Fund will hopefully provide the necessary medium-term finance,” said senior energy advisor Roger Salomone
“Any funding, however, is not a substitute for reforms to financing mechanisms for low-carbon energy, or this well intentioned scheme could result in good money after bad,” said Salomone.
See: Budget 2010: Darling targets SMEs, skills and wind turbines
The Budget came less than a week after eight engineering organisations called on government to recognise the vital role engineering must play in the UK’s economy, the environment, education, infrastructure and public services.
“Engineers will sit at the heart of efforts to rebuild a balanced economy based on a greater diversity of industries,” said Lord Browne of Madingley, President of the Royal Academy of Engineering, at last week’s launch of Engineering the future of the UK - a vision for the future of UK engineering.
“The economic impact of engineering stretches far beyond the measurable output of factory production lines,” said Lord Browne.
Engineering the future of the UK - a vision for the future of UK engineering is published by Engineering The Future, a collective body made up of the Engineering Council, EngineeringUK, the Institution of Civil Engineers, the Institution of Chemical Engineers, the Institution of Engineering and Technology, the Institution of Mechanical Engineers, the Institute of Physics, and the Royal Academy of Engineering.