Budget 2010: Manufacturers boosted by technology incentives

GREEN technology incentives are likely to offer manufacturers major opportunities for growth in the mid-term.

In his speech, the Chancellor announced £60m would be set aside for infrastructure development to meet the needs of offshore wind turbine manufacturers looking to locate new facilities in the UK.

The Budget also announced the Government’s intention to create a Green Investment Bank, which will be supported by up to £1bn from the sale of infrastructure-related assets.

This new bank is likely to boost investment in major low carbon infrastructure products, such as low emission and electric vehicles and renewable energy.

The process is in line with the Government’s drive to a low carbon economy and in recent months it has offered incentives to manufacturers around the country to get involved in the low carbon supply chain which although in its infancy, offers major opportunities for growth.

As an example, Mr Darling paid tribute to Nissan’s recent announcement that it is to manufacture its zero emission Leaf car in Sunderland, although he said this would not have been possible without Government support.

Of better news to manufacturers was the Government announcement of an increase in the threshold of the Annual Investment Allowance from £50,000 to £100,000.

Terry Jones, of BDO in Leeds, said: “The increase in the investment allowance and the freezing of the 21% corporation tax rate will undoubtedly help manufacturers. But more importantly the extension of the time to pay by Revenue & Customs will really help, although I think it will be tougher to get into.

“I suppose it could be good news for football clubs!”