The BPF’S UK Manufacturing Association alliance highlight industry 'threats' and 'opportunities' in letter to Chancellor
Friday, 11 June 2010
The BPF and its Eight Association alliance submitted a substantial letter to the Chancellor George Osbourne, presenting their views and proposals to be taken account of ahead of the forthcoming Emergency Budget statement on the 22nd June 2010.
The members of the alliance represent the plastics, rubber, coatings and associated machinery and tool makings sectors. Together the group represents 315,000 employees from 6, 150 companies with a sales turnover of £23 billion per annum.
Key themes of the letter, sent on 1st June 2010, are the budget's potential opportunities and threats to the UK manufacturing industry. Some of the key points raised in the letter to the Chancellor are as follows:
- Increasing commodity prices are a threat to recovery and inflation
- The Association welcomes the Chancellor's commitment to urgent and tough action to reduce spending in the public sector rather than increased taxes and supports the initial cutbacks the Chancellor announced on 24th May 2010
- The Association supports the decision to reinvest some of the savings in apprenticeships and education for 16-19 year olds. Our industries need to recruit suitably qualified young people rather than import labour
- There is little sign of recovery in the Construction and Building sector and there is much concern about the lack of work in the pipeline for 2011 and beyond. There could be a double dip effect here. We hope the Government can consider ways of stimulating it
- The Association urge the Chancellor to reduce the level of VAT to 5% on construction products that deliver energy and water efficiency
- The Association welcomes the Chancellor's commitment to reform the corporate tax system to simplify reliefs and allowances. The Chancellor pledged to reduce corporate taxation from 28% to 25% in the forthcoming Budget. This is a most welcome stimulus for manufacturing
- The Government should focus on withdrawing export functions and resources from English RDAs and improving the UKTI offering in grants and support for all companies so that we can capitalise on sterling's value and increase our industries' already substantial export achievements
- The Association asks that the Chancellor does not increase the Climate Change Levy or fuel duties next year, to assist companies to recover. We also propose the Government review critically the onerous and costly Carbon Reduction Commitment
Please email [email protected] for a copy of the letter.
ENDS
For all media enquiries, BPF logos and images, please contact Rita Ogole, Senior Public Affairs Executive on 0207 457 5043 or email [email protected]
Notes to Editor
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.
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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