Budget ‘must halt manufacturing decline’, says PAFA

Tyson has called on the Chancellor to address a number of areas of serious concern for the manufacturing industry when he delivers his Budget speech next Wednesday.

Among these are calls to build more energy-from-waste plants, to halt manufacturing decline in the UK and to reduce “disproportionately high” energy costs in the UK compared to other countries.

Tyson also demanded that Darling acted to stop the sudden withdrawal of credit insurance, which, he said, had jeopardised many “viable UK businesses”.

A fifth demand centred on the need to invest in innovation by increasing the annual investment allowance and increasing funding for training to plug the “widening skills gap”.

Tyson said: “Our members are not asking for bail-outs like so many other UK institutions, but we are asking for a recognition that British manufacturing can be the most innovative and efficient if we are allowed a level playing field and the breathing space to manufacture our own success.

“The Chancellor has the perfect opportunity in the forthcoming budget to make a difference to manufacturing but only if he acts now.”

PAFA’s call over credit insurance comes just weeks after a Packaging News survey found that 86% of readers believed government should act to help businesses get credit insurance. Some 68% of respondents said that credit insurance had been withdrawn to certain customers in recent months.

PAFA’s BUDGET DEMANDS

Halt manufacturing decline in order to maintain a strong UK base for flexible packaging production, in turn allowing continuity of food supply and the production of locally sourced, locally packed produce to British shoppers.

Stop the trend of soaring energy costs which are disproportionately high in the UK and jeapordise the competitive status of UK packaging businesses in a global supply environment.

Halt the withdrawal of credit insurance, without financial justification, by European insurers. This is affecting viable UK businesses and their customers who now need effective alternative Government backing.

Invest heavily in innovation supported by major increases in the annual investment allowance and increased funding for skills and training in order to plug the widening skills gap as experienced employees are being driven from the manufacturing sector.

Accelerate investment in energy-from-waste plants. This could reverse the flow of waste to landfill and maximise the potential for converting packaging waste to energy – with significant consequent reductions in the UK’s reliance on overseas energy supplies.

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