Autumn Statement 2016
The Autumn Statement is “good news for plastics businesses in the UK”, according to the Director-General of the British Plastics Federation.
Making the comments on account of Phillip Hammond’s first major Commons event as Chancellor, Philip Law said the Government’s confidence in avoiding a recession and predicted economy growth was “reassuring.”
Law highlighted the continued commitment to cut Corporation Tax to 17 percent by 2020 as a particular benefit, and commended the £23 billion planned investment in innovation and infrastructure over the next five years.
“The investment of £23bn in innovation and infrastructure, together with a further £2bn being invested in funding R&D, is especially welcomed by the UK plastics industry, as it lives or dies by its capacity to innovate and needs encouragement to pave its way towards Industry 4.0 and beyond,” Law said.
“Infrastructure development not only opens up business opportunities for suppliers of plastic products but also provides logistical benefits for industry in general.”
On housing, the announcement of a £2.3billion infrastructure fund to help provide 100,000 new homes in high-demand areas, as well as £1.4bn to deliver 40,000 additional affordable homes was also welcomed by Law, who said the move would prompt “wider expenditure on everything from furnishings to electrical products that rely upon plastic components.”
For exporters, Law said he “eargerly awaited” the fruits of the commitment to double UK export finance capacity, as 80 percent of BPF members export overseas.
Other key points, such as the announcement of investment in the transport and roads infrastructure, an increase of the National Living Wage from £7.20 - £7.50 an hour from April 2017 and the recognition of the importance of a strong digital infrastructure will also benefit both the plastics – as well as wider - UK manufacturing industries.