Following the release of the latest UK Manufacturing PMI today (1 September), Ginni Cooper, partner at MHA, says the next prime minister must offer immediate sector support and clear tax incentives to restore plummeting manufacturing confidence:
“With the prospect of an economic downturn on the horizon, it is no surprise that business confidence continues to plummet amid a second consecutive month of falling sector output. Manufacturers continue to operate against an extremely challenging backdrop of rising input costs, shortages of skilled labour, the impact of the cost of living crisis on consumer demand and supply chain disruption.
“With future growth subdued, the government needs to act quickly to restore confidence in the short to medium term. Central to this will be clear plans from the new prime minister on future tax incentives. Rolling back the planned Corporation Tax rise will be key but so will extending the super deduction and the annual investment allowance of £1m by at least a year to March 2024.
“Alongside short-term measures, it’s vital the government grasps the opportunity to implement longer term strategies to address the sector’s skills gap. A suite of incentives, from assisting investment in AI technology and smarter working, through to rewards for meaningful engagement with schools and college would address the skills shortfall and go a long way to driving increased optimism and investment in UK manufacturing.”
https://mha-uk.co.uk/
