Manufacturers also called on the Chancellor to scrap his spring budget to stop the Government's «changes» in business policy. Photo: OLI SCARFF/AFP < p>Factory bosses have called on Jeremy Hunt to cut business taxes and cut red tape to boost growth, arguing the current system is «not fit for purpose».
Nearly half of manufacturing companies say taxes and regulations are ineffective. unfavorably, according to a survey by trade body Make UK and RSM. More than a quarter of executives surveyed said taxes and regulation in Britain are worse than in China.
Faheen Khan, senior economist at Make UK, called for “urgent maintenance” on taxation and red tape.
Mr Khan said: “Manufacturers understand that many aspects of the current tax and regulatory system are not suitable
Manufacturers have also called on the Chancellor to scrap his spring Budget to stop the Government's 'upheaval' on business policy .
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Companies warned that ongoing changes to tax incentives and research and development investment policies were a major blow to their investment plans. It comes after Rishi Sunak's major U-turns on the net zero policy and HS2.
Mr Khan said: «We cannot continue with the current instability and policy incoherence if we are to shake the economy out of crisis.» its current apathy and promote long-term growth.»
Factory executives said the best ways to stimulate investment and growth in the sector were more generous capital incentives, R&D tax credits and lower corporate taxes. More than half said current policies expenses should be made constant.
Separate research has found that manufacturing companies are experiencing the largest share of ongoing labor shortages, according to the British Chambers of Commerce (BCC). .
Between July and September, 78% of manufacturing companies reported problems hiring employees, second only to the hotel sector (79%).
Economy-wide, almost three-quarters of companies (73%) were still having difficulty finding staff. Although the figure has fallen from a peak of 82% at the end of 2022, post-pandemic labor shortages are still taking a huge toll.
Jane Gratton, deputy director of public policy at BCC, said: “The scale of the workforce crisis remains enormous
“There are just under a million vacancies in the economy and skills shortages are undermining the ability of businesses to operate profitably.”
A government spokesman said: “We are making Britain the best place in the world to do business.” , offering the lowest corporate tax in the G7 countries, a smart regulatory framework and a simplified tax system to save companies time and money.
“Growing the economy is one of our top priorities, which is why we have introduced a complete system spending, effectively cutting corporation tax by £27 billion, resulting in tax savings of 25p for every £1 invested, plus new £2. A $500 million a year R&D system for 20,000 UK SMEs.»
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