Budget 2012: Manufacturers issue wishlist to Osborne

MANUFACTURERS in the West Midlands have outlined their wishlist to Chancellor George Osborne ahead of today’s Budget.

A common theme has been the need to create stable conditions for growth, while axing the 50% tax rate has also occupied the thoughts of many.

Tony Sartorius, Managing Director at Alucast in Wednesbury said there was a need to create an environment in order to boost demand as this would encourage more people buy products.

“We make things and sell them: this makes us busier, we make money and pay tax – this is good for us and good for the Government as they get tax and we employ more people – pretty simple really,” he said.

He also said Mr Osborne should allow high first year capital allowances of £100,000 or more as this would encourage firms to invest and in turn, boost the capital goods market.

The Government has extended capital allowances to its Enterprise Zone network in an effort to encourage more businesses to locate there.

Organisations such as the Black Country Local Enterprise Partnership have welcomed the move and said the decision will prove a major incentive to companies wishing to relocate for growth.

Mr Sartotius added that dropping the 50% tax rate would be a further encouragement to firms.

“I think it makes sense that people earning money should keep more than they pay in tax to the government. A 40% top tax rate means you keep 60% even if you have to pay NI,” he said.

He said companies were holding on to cash because people were cautious about what might be ahead.

“Confidence is the key, don’t talk down the economy- talk it up. The Americans are right… their economy is growing,” he added.

Many manufacturers said the Government also had to make it easier for firms to get finance for business. This would enable more to plan for the future with confidence.

Rowan Crozier, Sales and Marketing Director at Brandauer in Birmingham, said his firm were holding out for more support for SMEs in the shape of 100% funding for sales, technical R&D and quality management projects.

He said he was also hoping for subsidised growth schemes to encourage diversification into new technologies and international markets. In addition, a reduction in fuel duties and tax breaks on all low emission related projects and vehicles would encourage further innovation and provide long-term growth opportunities.

Cllr Ben Adams, Staffordshire’s cabinet member for economic growth and enterprise, said any measures to support business and job creation would complement his authority’s ongoing drive to increase economic growth and prosperity.

Cllr Adams said he was looking orward to positive announcements by the Chancellor that would reduce the costs of employment and help businesses to invest in their own futures.

“Any measures to cut the costs of employing people and increase job opportunities will be good for Staffordshire. Reduced employer national insurance contributions would be particularly welcome,” he said.

He welcomed the new credit easing initiatives and said improving access to finance was critical for the future success of SMEs.

Cllr Adams said he was also hoping to see more powers devolved to a local level so the council could directly support businesses and assist with regeneratio.

“It would also make a big difference to our businesses, particularly SMEs, not to be burdened by excessive employment legislation. We work hard to encourage businesses to take on apprentices in Staffordshire. We want to see more of these young people become permanent employees,” he added.