Crowe calls for manufacturing support in Budget
National audit, tax, advisory and risk firm Crowe is calling on Chancellor Rishi Sunak to support the manufacturing sector in his Budget on Wednesday 3 March.
Johnathan Dudley, Partner and Head of Manufacturing at Crowe, said: “The government has secured billions in COVID-19 corporate debt, most of which is at least a medium term risk to the Exchequer.
“To reduce and manage this risk, it is important for manufacturers to be productive and competitive and for the original equipment manufacturer (OEM) supply chains to be secure for the former to survive and the latter to have the incentive to stay around. This requires investment and simple tax relief alone will not justify it.”
He said that investment is needed in digital equipment and production processes, skills, reshoring, exporting and more in innovation.
“Using the R&D mechanism will enhance this as a credit against COVID-19 debt to reduce gearing and increase industry viability and security of the government’s debt along the way.”
He added that if corporate tax rates were to be increased, then so must the incentive for UK business to modernise and create long term sustainability. This, in turn, will mitigate the government’s risks in terms of lending guarantees.
And he called on the government to reinstate some kind of job retention cash bonus, or even credit against debt repayment, VAT or PAYE deferral.
“Incentives and support for UK banks to open new accounts for new customers or for customers expanding overseas (exporting rather than importing or offshoring) would also be a welcome move.
“Innovation grant funds that are genuine should be put forward. ‘Competitions’ are over-subscribed and are routinely taken up by big businesses before SMEs get a chance to apply. The process, freed from the restrictions of EU red tape, needs to be simple and provide a clear route to qualification and remove uncertainty of eligibility, quickly,” he said.
Crowe is holding a post-Budget webinar on Friday 5 March at 12 noon. Attendance and participation in the event is free and registration is available by emailing email@example.com or calling 0121 543 1900 for details.
Ends (347 words)
Miriam Sherwood, Senior Marketing Manager (Regions), Crowe. Tel: 0121 543 1900
Notes to Editors:
Crowe is a national audit, tax, advisory and risk firm offering global reach and local expertise. We are an independent member of Crowe Global, the eighth largest accounting network in the world. With exceptional knowledge of the business environment, our professionals share one commitment, to deliver excellence.
We are trusted by thousands of clients for our specialist advice, our ability to make smart decisions and our readiness to provide lasting value. Our broad technical expertise and deep market knowledge means we are well placed to offer insight and pragmatic advice to all the organisations and individuals with whom we work. Close working relationships are at the heart of our effective service delivery.
For more information, visit: www.crowe.co.uk
Crowe industry recognition
- UK Member of the 8th largest accounting network in the world (International Accounting Bulletin World Survey 2020)
- Top charity auditor (Charity Financials Auditor Benchmarking and Charity Finance Audit Survey, 2009 – 2020)
- Leading advisors to the UK mid-market, ranked 8th AIM and Main Market auditor (By number of audits of listed companies, FRC Key Facts and Trends in the Accountancy Profession, Figure 38, October 2020)
- 9th largest audit firm in the UK (UK fee income of audit firms that audit PIEs – by fee income on audit, FRC Key Facts and Trends in the Accountancy Profession, Figure 33, October 2020)
- Awarded Bronze for Accountancy Firm of the Year – Large (2020 Citywealth Magic Circle Awards)
- Global Mobility Provider of the Year (Global Payroll Awards 2020)
- Employment Tax Specialist of the Year (Global Payroll Awards 2019)