BPF Welcomes Government Focus on Manufacturing

The British Plastics Federation (BPF) has made a strong contribution to Government thinking on growing the manufacturing economy in a response to the Government’s ‘Growth Review Framework for Advanced Manufacturing’.

The BPF cited the existence and level of taxation in the UK as one of the main barriers of growth in manufacturing and the April increases a contributing factor in placing the UK at a competitive disadvantage. However it welcomed the Government’s phased reduction of Corporation tax.

“Fiscal policy places the UK at a competitive disadvantage; the fuel tax is the highest in Western Europe and should be scrapped. The Carbon Reduction Commitment is a clumsy and burdensome extra tax on industrial energy usage,” said BPF Director-General, Peter Davis. 
The BPF asked Government to address energy costs and the security of supply in energy. Manufacturing is vulnerable as the UK gas storage capacity is at 15 days compared to 122 in Germany. Supply of energy may not equal demand from 2015-17.

Results from the BPF’s Business conditions survey in June 2010 showed that 59% of companies were planning capital investments in the coming months. Yet with many UK banks still reluctant to lend to manufacturers this will become increasingly difficult. The BPF requested that the Government seriously consider the formation of an ‘Industrial Bank’ from parts of publicly owned banks and enhancements to Capital Allowances in order to stimulate the future of investment.

The BPF recommended that the Government strategically examines plastics raw material supply in Europe.Some polymer production capacity is in old plant and new investments are directed at the Middle East and the Far East.

Additionally the BPF urged the Government to promote overseas business development for UK manufacturing firms and reminded the government that the plastics industry has major strengths which other countries do not enjoy:

• A flexible ‘can do’ industry attitude
• Six world class Universities expert in Plastics Technology
• A world class Design Industry with a strong connection to Plastics
• A growing expertise in Plastics Recycling Technology
• A strong trade federation for plastics which is internationally showcasing UK expertise in Sustainable Plastics Processing 

“UK manufacturing excellence must be showcased to the world and as such the BPF suggested that the London 2012 Olympics are a ready-made platform to do this,” said Davis. “Plastics will feature prominently in the Games and BPF members have won contracts covering construction, sports equipment and clothing,” he added.

According to the BPF initiatives to put a spotlight on UK expertise should be rolled out with even greater government backing such as its own initiative on sustainable manufacturing in plastics which was presented at the Kunstoffe Fair in Germany last year and also at the Plastivision exhibition in Mumbai last month.

The BPF hit out at the tendency for UK officials to ‘gold plate’ legislation when transposed into national law and believe that commonsense and less red tape needs to be applied to health and safety legislation.

“Employment legislation is far too complex for small businesses and discourages the expansion of the workforce,” said Davis.

The BPF also called on Government to address the image of manufacturing which it believes is responsible for fuelling unwarranted attacks on chemicals and plastics and also requested that the Government address the difficulty of recruiting skilled personnel into the sector.

ENDS

For all media enquiries, BPF logo and images, please contact Rita Ogole, Senior Public Affairs Executive on 0207 457 5043 or email [email protected]

The British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.