Budget speech finds broad favour with manufacturers 22 March 2012

Following yesterday's budget announcement by the Chancellor, reactions from manufactures and manufacturing organisations have been varied.

Stephen Tetlow, chief executive of the Institution of Mechanical Engineers (IMechE), says we are still lacking an ambitious industrial strategy to rebalance the UK economy.

"With British manufacturing growing by less than 1% in the past year, we are still sorely lacking a bold, ambitious industrial strategy to rebalance our economy," complains Tetlow.

"This budget contains some helpful measures, but it's a vision we need, not this piecemeal approach. We're hearing the right notes, but no tune," he adds.

That said, Tetlow welcomes the patent and R&D tax credits as well as the promised investment in North Sea oil and gas. He also points to the UK Centre for Aerodynamics, which "will help our world-class engineers design and commercialise the next generation of aircraft".

Meanwhile, Eiko Ichikawa-White, commercial director of SME engineering manufacturer Blackman and White believes the Chancellor got it right.

"The Budget's emphasis on exports was exactly what we needed to hear. Blackman and White depends on international customers for 60% of our business," comments Ichikawa-White.

"We are pleased that the government is serious about export which, when combined with the headline reduction in corporation tax, will enable greater investment in plant and people," he continues.

"The Chancellor said he wanted to 'earn the future'. We're doing that day in day out and the announcements today are going some way to boosting a business environment to survive and thrive."

And engineering recruitment specialist Roevin sees the budget statement as demonstrating "continuing commitment to infrastructure investment as a catalyst for wider economic growth".

Mark Tully, head of Roevin, expects a boost for engineering jobs, and urges government and industry to work together to "invest in nurturing engineering talent to deliver on these long-term policy initiatives".

He also points to tax relief for the oil and gas industry, which promises to unlock investment in the UK's offshore industry. "This will be a welcome incentive to the UK skills market, encouraging specialist oil and gas engineers to accept interesting opportunities at home, at a time when many of our best engineers are being enticed abroad to work on major offshore projects," he says.

Brian Tinham

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