1:40 am, November 25, 2011
THE SMMT is calling for investment and growth action in the Government’s Autumn Statement to boost UK competitiveness.
In a letter to the Chancellor, the SMMT has called on the Government to use next week’s statement to ‘deliver tangible changes to unlock private sector investment and support export-led growth’.
‘Action to build the competitiveness of UK plc through private sector investment will be key to delivering economic growth,’ said Paul Everitt, SMMT chief executive, ahead of the Government’s Autumn Statement on November 29.
The SMMT calls include R&D tax credit reform – making R&D tax relief ‘above the line’ would generate more investment and jobs – capital allowances – allowances for capital spending in the UK are now among the lowest in the G20 – and more support for skills and apprenticeships.
The letter also calls for business rates to be made ‘internationally competitive’, and for businesses to have access to affordable finance.
‘Next week’s Autumn Statement will be crucial in determining the rate of UK economic recovery and the future decisions of global automotive companies and their supply chains,’ said Everitt.
‘The Chancellor must take this opportunity to position the UK as a prime location for manufacturing and incentivise private sector investment in R&D, skills and capital equipment. We have an opportunity to speed up the re-balancing of the economy and to generate new high value employment.’
The SMMT’s submission drew attention to this year’s unprecedented levels of international investment in UK automotive, with global companies committing more than £3.9bn so far this year to long-term manufacturing operations in the UK, announcing new jobs and building new facilities.
It is this level of momentum that industry wants the Government to maintain by acting decisively and demonstrating that the UK is a prime site for private sector investment and a location where SMEs can grow, says the SMMT.
The SMMT also wants to see the continuation of the Plug-In Car Grant.
