Cara Haffey, industrial manufacturing leader, PwC commented on the impact of the Autumn Statement on UK manufacturing:
“Manufacturing is a significant cog in the UK’s economic system and manufacturers will certainly welcome further investment in growth enhancing areas such as innovation, infrastructure and skills.
“Moves to create three million apprentices by 2020 will be a boost to the manufacturing sector as they look to secure their talent pipeline for the future.
“However, this comes with a bit of a sting in the tail and manufacturers will be looking to understand the devil in the apprentice levy detail. For many large employers, there is a risk this will become a payroll tax, with the 0.5% payroll levy potentially in excess of the costs of the number of apprenticeships they offer.
“Other areas which UK manufacturers are monitoring include the National Living Wage and auto enrolment costs, with the latter now being pushed back by two six month periods to align with the tax year. When combined with the apprentice levy, however, businesses could find themselves facing an increase in employee costs in the years ahead.”
Phil Harrold, automotive lead for PwC, comments on the Government’s commitment to enhanced funding:
“It was encouraging to see the Government’s commitment to enhanced funding for the UK’s Catapult Centres. These engineering research centres, such as the enhanced manufacturing unit at Warwick University, are crucial to support R&D and technical activity in manufacturing – keeping the UK at the forefront of innovation. With a number of regional manufacturing hubs, including the automotive sector in the Midlands, this additional R&D funding is good news for the businesses across the country.”
