Eight Association Alliance Write to Chancellor Ahead of Pre-Budget Statement

On 22nd October, ahead of the Pre-Budget Statement, the Eight Association Alliance wrote to the Chancellor of the Exchequer, Alistair Darling, in order to present a series of proposals designed to help the Alliance’s members to deal with the recession and prepare for the economic upturn.

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.

The Alliance highlighted to the Chancellor that whilst its members were increasingly optimistic about future business conditions they are still being severely affected by the lack of available finance and difficulties in obtaining trade credit insurance.

In order to help aid the recovery the Alliance requested the extension of the suspension of Stamp Duty for a further 12 months and the postponement of the increase in small companies’ corporation tax until April 2011, and urged the Chancellor not to increase National Insurance Contributions in April 2011 as previously planned. The Alliance welcomed the extension of the Car Scrappage Scheme and the decision not to increase the Climate Change Levy rates for 2010-11.

Due to significant economic uncertainty it has not been possible for many firms under the Alliance’s umbrella to take advantage of the 40% first year Capital Allowances. The Alliance has therefore called on the Chancellor to extend this Allowance until April 2011.

With the potential of an economic recovery companies must be able to access to skilled labour. The Alliance therefore supports the CBI’s call for the Government to subsidise 50,000 apprenticeships. Moreover so as not to impair firms’ employment flexibility during this turbulent period the Alliance has requested the delay of the Temporary Agency Worker’s Directive until April 2011.