Accountants Crowe Clark Whitehill have welcomed Chancellor George Osborne’s pledge to deliver a “Made in Britain” Budget in March.
Mr Dudley, Head of Manufacturing Business for the national audit, tax and advisory firm, which also runs the fast developing Midlands Manufacturing Network, said Mr Osborne was echoing what he had been saying for a number of years.
“We need to understand that manufacturing is the key to our future prosperity,” he said.
“It is said that for every job at an automotive original equipment supplier, there are ten created in the supply chain.
“This is a significant driver for the economy,” noted Mr Dudley.
“It is important to manufacture cars and other high value products in the UK and in the region over and above simply assembling them.
“The high value in manufacturing is not in assembly but through cutting edge design and product capability, and this has an effect on other industries. Techniques in developing fantastic cars, for example, reach through to innovation in other high value manufactured goods.
“There is a worldwide demand for our high value products, particularly in emerging economies, which, so long as we protect our brands and know-how so that they can’t be copied, is terrifically encouraging. The future is bright.
“Britain is an island with limited natural resources but with a high population relative to its footprint. So, in order to present a balanced economy, we have to add value to natural resources which are generally sourced elsewhere in the world – hence manufacturing is the key.”
Mr Dudley was responding to Chancellor George Osborne’s comments that the country could no longer rely on consumers alone, or put “all its chips on the success of the City of London”.
Mr Osborne said: “Britain is not investing enough. Britain is not exporting enough. I want to deliver a Budget that supports a Britain that invests and that exports.
“A Budget which ensures that wherever you are, you can’t help but see ‘Made in Britain’.”
Mr Osborne’s comments in a speech to business leaders in Hong Kong came after the Bank of England upgraded its UK growth forecast for 2014 from 2.8 per cent to 3.4 per cent.
UK unemployment continued to fall in February and inflation edged under two per cent, meeting the Government’s target.
Mr Dudley said: “If the Chancellor is serious about delivering a balanced and sustainable recovery then he needs to put in place a structure which supports our manufacturers, particularly those who export.”
He cited four ways in which Chancellor Osborne could help.
“We need an extension of the time period for the threshold of the 100 per cent Annual Investment Allowance beyond 2014.
“We need tax incentives for exports sales – for example enhanced reliefs on expenditure incurred on export marketing.
“He needs to widen the brief and funding of UK Export finance and provide additional financial support where the banks cannot.
“And it is vital that he continues to fend off EU attacks on our Patent Box legislation,” he said.
“There are many other things he could do, but these four elements could make a significant difference to the success of our manufacturers, but these would be a good start.”