Spring budget presents mixed bag for UK industry

The Chancellor’s spring budget presents a mixed bag for UK industry, says Mark Yeeles, VP for industrial automation at Schneider Electric in the UK and Ireland, commenting: “While the full expensing measures are a good step towards encouraging the investment that is vital for our sector to become more efficient and productive, the imminent end to energy cost support presents an existential threat to many businesses in our sector.”

He added: “The reduction of R&D tax credits will dampen innovation.”

He pointed to cause for cautious optimism in the Chancellor’s reference to “industrial strategy”, but said: “There is little evidence yet of a sustained, strategic approach to incentivise the digital transformation of UK industry that is required.

Lost opportunity

“While measures such as the new AI sandbox, and support for the carbon capture industry shows support for sectors with big growth potential, this budget is another lost opportunity to offer UK industrial enterprises the breadth and depth of strategic support required for the transformational change needed to reverse flagging productivity and unleash the UK’s undoubted potential to compete on the world stage.

“Set against the huge support packages announced recently by the EU and the US and without further measures in the near-term, UK industry as a whole may fall further behind.

What he did find positive, however, were the measures announced to improve the provision of accessible and affordable childcare and retraining. “These are both important steps in the right direction for the skills and equality challenges faced by UK industry and as such are very welcome,” he said. “It is essential that we strive for an inclusive work environment which enables those with childcare responsibilities to remain in or re-enter the workforce, and imperative that we enable the upskilling of the workforce to meet the needs of the workplace of today and into the future.”