The BPF says it is pleased with the outcomes of the Budget, saying the measures introduced should help “stimulate employment and investment in plastics companies.”
The Fedeartion states measures introduced by the Chancellor, George Osborne, that will go some way to benefitting small plastics companies in particular include introducing a new £2000 Employment Allowance to reduce employer NICS contributions for all businesses, doubling the size of loans that employers can offer tax free to pay for items such as season tickets to £10k, as well as increasing the above-the-line R&D credit to 10 percent.
The Federation states that proposals delivered via a letter to the Chancellor and subsequently discussed with Mr Osborne during his recent visit to Albis UK from the ‘Seven Associations’, a group of manufacturing bodies representing the UK plastics, rubber, coatings and associated machinery and tool making sectors, had been addressed in the Budget.
Peter Davis, Director-General of the BPF, said: “We are delighted that the Chancellor agreed to our request to cancel the September Fuel Duty increase which would have hit our companies’ competitiveness. We are also pleased that he has announced a further cut in Corporation Tax down to 20 percent from April 2015, which will keep and attract investment in the plastics industry”.
With regards to the Chancellor’s ‘Help to Buy’ proposals, Mr Davis said: “In our letter to the Chancellor and our discussions with him at Albis we urged him to do more to stimulate the bottom end of the private housing market. We are very pleased he has launched 'Help to Buy' with shared equity loans up to 20 percent of the value of a new built home to help people who can’t afford a big deposit. This should stimulate house building and refurbishment and help our members producing construction products.”
The Chancellor is also boosting spending on infrastructure by £3bn a year from 2015/16.
Mr Davis continued: “We welcome his [the Chancellor’s] introduction of a generous new tax regime for Shale Gas exploration, but are disappointed there was not more emphasis on ensuring UK industry has long term access to affordable and plentiful energy supplies, with a serious energy supply deficit on the horizon.”