The Society of Motor Manufacturers and Traders’ (SMMT) chief executive, Mike Hawes, has said that the UK automotive sector does not need government handouts but rather a renewed focus on investment.
Speaking to City A.M., he said that the sector needed a framework that was sufficiently competitive to enable the UK industry to compete with other countries for investment. He also said:
“Improved R&D tax credit, investments in skills, grants for capital expenditure, that’s where the [UK Government’s] focus should be. For most manufacturers, corporation tax is an irrelevance. It isn’t a driver of investment, never has been and never will be.”
At a recent fiscal event on September 23, Chancellor Kwasi Kwarteng announced that a planned increase in corporation tax from 19% to 25% would not be going ahead. By keeping corporation tax at one of the lowest levels in the G20, the UK Government hopes to improve productivity and increase growth.
Hawes welcomed the Government intervention on energy costs. According to recent data from the SMMT, 70% of its members are concerned that energy prices will affect their operations. He pointed out, however, that a long-term set of measures beyond the current six-month relief was needed to bring down energy prices, for households as well as businesses.
While the intervention on energy prices has no doubt saved many businesses, it still makes sense to make energy efficiency savings wherever possible. At TrAchem, we supply wide range of advanced lubricants that can achieve tangible energy savings, like the Klubersynth GH 6 range of polyglycols-based lubricants.
