Businesses need to "export more, build more and manufacture more" – Osborne

THE Chancellor today unveiled a series of measures including tax breaks to boost productivity, exports and manufacturing as he set out to reassure critics that the Government was backing Britain’s businesses.

Whilst choosing to reinforce the need for continued austerity to keep the economic recovery moving in the right direction, Mr Osborne pledged to support manufacturers and to “back all regions of our country” as he announced a £7bn package to cut energy bills for manufacturers and other businesses.

“Manufacturing is growing again, and jobs are being created across the country,” he said.

“A resilient economy is a more balanced economy with more exports, more building, more investment – and more manufacturing too.”

He added: “We’ve got to support our manufacturers if we want to see more growth in our regions.”

Hailing the success of Enterprise Zones, the Chancellor announced an extension to enterprise zone benefits.

“Many of the enterprise zones we created are now flourishing – so the business rates discounts and enhanced capital allowances will be extended for another three years,” he said.

He unveiled measures to double the annual investment allowance to £500,000, at a cost of £2bn, and extend to the end of 2015. 

Incentives for housebuilding came in the form of a £500m finance for small housebuilders as well as extending Help to Buy for the rest of the decade. 

“Housebuilding up 23% but that is still not enough,” said Osborne.

“That’s why we’re making further reforms to our planning system and offering half a billion pounds of finance to small house building firms.”

Mr Osborne also set out changes to the export finance system, announcing the doubling of lending for export finance to £3bn and interest rates cut by a third.

“Britain has to up its game on exports and we should be backing businesses wantng to trade overseas.”

He said the changes to the system today would create the “most competitive export finance system in Europe.”

Other measures included:

* Corporation tax down from 23% to 21%, and then 20% next year. 

* Extended grants for small businesses to take on an extra 100,000 apprentices, and also introduce degree level apprenticeships.