British Plastics Federation Comments of Chancellor’s Pre-Budget Report
Wednesday, 9 December 2009
Commenting on the Chancellor’s Pre-Budget Report on 9th December 2009 the BPF welcomed the postponement of the increase in small business’s corporation tax and criticised the increase in National Insurance Contributions and the lack of action to tackle the public sector deficit.
In October, the BPF as a part of the Eight Association Alliance wrote to the Chancellor of the Exchequer, Alistair Darling, to present a series of proposals designed to help the Alliance’s members to deal with the recession and prepare for the economic upturn.
Peter Davis, BPF Director General says:
“We welcome the postponing of the increase in small companies’ corporation tax until April 2011, which we and the Eight Association Alliance called for in our letter earlier this year. The initiative to tax the income from new UK patents at a lower rate of 10% from 2013 is also to be commended.”
“We very much regret, however, that the Chancellor has chosen to increase National Insurance Contributions from 2011 and that Stamp Duty Holidays on properties up to £175k were not extended. This will undoubtedly have a negative effect on getting first time buyers into the housing market.
In order to help aid the recovery the Alliance had requested the Chancellor not to increase National Insurance Contributions in April 2011 as previously planned and had urged him to extend the suspension of Stamp Duty for a further 12 months.
Davis says:
“It is disappointing that the Chancellor has not made the big cutbacks in public expenditure which we called for. The Government’s public sector deficit of £175bn requires urgent action if we are not to risk downgrading the UK’s international credit rating which will adversely affect business confidence and the Government’s ability to borrow.”
“The Alliance had proposed: a freeze on public sector recruitment to help achieve a 10% or 600,000 employees’ reduction; reduction; a public sector pay freeze for 2010; no final salary pensions for new staff; a major cull of quangos.”
furthermore Mr Davis goes on to say
"The Chancellor's surprise cut in the rebate on Climate Change Levy from 80% down to 65% for those companies in a Climate Change Agreement is bad news for the environment. Plastics companies in the BPF's new CCA now have less savings from the tax to spend on energy reduction measures."
ENDS
To download the full letter sent by the Eight Association Alliance to the Chancellor please visit the following link: http://tinyurl.com/yhxy4wy
For further information on this press release, please contact Anthony Roberts, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5043, fax 020 7457 5045, email: [email protected]
Notes for editors:
Notes for editors:
1) 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.
2) The Eight Association Alliance represents the plastics, rubber, coatings and associated machinery and tool making sectors. The members of the Alliance represent 315,000 employees from 6,150 companies with a collective sales turnover of some £23bn per annum.
3) The Eight Association Alliance comprises the following associations: The British Plastics Federation (BPF), British Rubber & Polyurethane Products Association (BRPPA), British Coatings Federation (BCF), Packaging & Films Association (PAFA), Gauge & Toolmakers Association (GTMA), Polymer Machinery Manufacturers & Distributors Association (PMMDA), Scottish Plastics & Rubber Association (SPRA) and Northern Ireland Polymers Association (NIPA).
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