Following the release of the latest UK Manufacturing PMI today, Andrew Matthews, partner at MHA, calls for the government to expand and simplify investment incentives:
“The storm is far from over for manufacturing. Inflation, Brexit and skill shortages are still chipping away at the sector. More and more manufacturers will be cautious for the future, forecasting a much less optimistic outlook than in previous years.
“The withdrawal of the super deduction and the Corporation Tax raise to 25% will certainly have a negative impact on investment in the marketplace. However, maintaining entrepreneurs’ relief, uncapping lifetime pension allowances and increasing pension annual allowances has boosted hopes for those looking to invest.
“Manufacturers with international exposure and the funds to implement change, will now be exploring lesser known, more regional tax benefits. The government’s commitment to expanding Freeports and Investment Zones could have a lot of potential in allowing businesses to re-invest and grow. However, these incentives are limited to a small amount of areas in the UK and have a complex rule book, which many may find prohibiting.”
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