The government published a joint Spending Review and Autumn Statement on 25 November 2015. Here’s a summary of what was announced Autumn Statement Summary. Rob Oliver CEO of CEA gives his comments on the chancellor’s speech.
Housing and Infrastructure:
“The announcements on infrastructure spending and boosts to housing starts are welcome – but with the usual “but” i.e. will they be translated into visible action and sustained construction activity”.
BIS/UKTI:
“The cuts to the BIS budget and the move away from grant support to loans for Innovate UK beneficiaries had been flagged up. Whether companies will want loans from government for R&D projects, when they can go to their own bank remains to be seen – and may inhibit risk taking on projects. The Chancellor avoided mention of UKTI, but their web site statement seems to suggest another rehash of schemes which may diminish the benefit of UKTI initiatives to the CEA’s smaller exporting member companies”.
Apprenticeship levy:
“The confirmation that the apprenticeship levy or payroll tax will affect companies with a turnover above £3 million will affect most CEA members from 2017. Our role will be to help ensure that there are sufficient relevant apprenticeship training opportunities for our sector, so that companies can turn this tax into a dividend.”
Energy intensive industries:
“The steel crisis has underlined the importance of helping those industries that are energy intensive. Exempting such sectors from the costs of renewables is a good sign for UK manufacturers and provides some certainty going forward”.
Rob Oliver, chief executive, CEA (Construction Equipment Association)
