The Chancellor, Jeremy Hunt, delivered his Autumn Statement to Parliament last Wednesday, including 110 measures for growth across the board. Menzies’ accountancy and strategic advisory experts shares a summary of the main points relating to the manufacturing sector:

Specific investment towards the manufacturing sectors:

• £4.5bn support over the next five years: The Chancellor announced a further £4.5bn funding for strategic manufacturing sectors for five years from 2025. It will support the transition to clean energy (carbon capture, utilisation and storage, electricity networks, hydrogen, nuclear and offshore wind) together with development of cutting edge technology including automotive (particularly electric vehicles, their batteries and supply chains), aerospace, and life sciences sectors.
• New sources of finance for advanced manufacturing: The Chancellor has clarified the government’s priorities for the UK Infrastructure Bank to ensure the Bank is able to invest in critical supply chains where it meets the Bank’s strategic objectives, including semiconductor manufacturing and critical minerals.
• New Investment Zones: The government has confirmed the next set of Investment Zones in Greater Manchester, the West Midlands, and the East Midlands; and doubling the flexible funding envelope for each Investment Zone from £80 million to £160 million by extending the programme and associated tax reliefs from five to ten years.
  • The Greater Manchester Investment Zone will focus on advanced manufacturing and materials
  • The West Midlands Investment Zone will focus on advanced manufacturing
  • The East Midlands Investment Zone will focus on green industries and advanced manufacturing

Wider support benefitting the manufacturing sector

• Permanent full expensing: The Chancellor has made the ‘full expensing’ tax break for companies permanent to incentivise business investment, which is good news for the manufacturing and construction sectors as it provides greater stability for longer term planning.
• Apprenticeship growth sector pilot: The government is committing £50 million to deliver a two-year apprenticeships pilot to explore ways to stimulate training in growth sectors including manufacturing, and to address barriers to entry in high-value standards
• Expansion to Made Smarter Adoption programme: The government is expanding the Made Smarter Adoption programme, helping more manufacturing SMEs adopt and use advanced digital technologies, which will also include digital internships.  
• Extension to British Business Bank’s Future Fund Breakthrough Programme  – The government will extend the Future Fund Breakthrough programme, which will provide at least £50m to help the UK’s most intensive R&D companies to scale up
• nationally and continuing to deliver new features and functionality to clients “

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Menzies are members of HLB International, a global advisory and accounting network. HLB is ranked in the top 10 international accounting networks. It is a fast-growing, dynamic network of worldwide accounting firms and business advisors, servicing clients through its member firms in over 150 countries.  HLB International has recently been awarded the Network of the Year 2022 award at the International Accounting Bulletin Annual Awards.              

An award-winning firm, Menzies were 2023 Finalists at the Tax Tolley Awards for: ‘Best Business Tax Team’; ‘Best Employer in Tax’; ‘Best Specialist Tax Team’ (Innovation & R&D); ‘Best Regional Tax Team’. Menzies won the title of ‘Corporate Restructuring & Insolvency Team of the Year’ at the 2023 Credit Awards for the third consecutive year.  The firm was also awarded the ‘Diversity and Inclusion’ award at the 2022 Turnaround, Restructuring and Insolvency (TRI) Awards, as well as ‘Corporate Rescue of the Year’ at the 2021 TRI Awards for their rescue of Shoreham Airport. In 2023, the firm was also recognised as one of the UK’s Top Accountancy Firms by private client.

MENZIES offers a full range of services –  audit & accounts advisory, tax (business & personal),  business recovery, forensic accounting, corporate finance, valuations as well as strategic advisory, outsourced services, people solutions, payroll, company secretarial and wealth management. Visit here for more information.   

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