Manufacturing trade body Make UK is calling for an emergency, pre-recess package of business support measures.
The call comes after a Make UK survey showed growth and orders slowing significantly with exports close to a standstill.
Make UK has made recommendations for measures the government can introduce now to address rising business costs, including:
• waiving or reducing business rates for the next 12 months
• implementing VAT deferrals for larger businesses and waiving completely for SMEs
• temporarily freezing the Climate Change Levy
• reviewing the efficacy of the business interruption loan schemes introduced during the pandemic and deploying a successor scheme
• extending the 130% super-deduction tax break, due to end in March 2023
• making the increase in the Annual Investment Allowance (AIA) permanent.
Stephen Phipson, chief executive of Make UK, said:
‘Whilst industry has recovered strongly over the last year we are clearly heading for very stormy waters in the face of eyewatering costs and a difficult international environment. This threatens to shatter expectations of a sustained recovery from the pandemic.’