Anger grows as UK Chancellor failures to support manufacturers in Spring Statement

Aaron Blutstein 24 March 2022  

Following the Spring Statement by the UK Chancellor Rishi Sunak, Industry has reacted angrily for his failure to address the needs of manufacturing businesses in the wake of increasing inflation, energy prices and taxes.

Reaction from industry accountancy specialist, Chris Barlow, partner at MHA, highlighted this feeling: “While Rishi Sunak would like to be known as a Chancellor who reduces taxes, the Spring Statement was a missed opportunity to help manufacturing businesses facing an onslaught of increases ranging from inflation to tax rises. Some of the reliefs and tax cuts announced today sounded impressive but pale into insignificance when you consider the barrage of tax increases on the way.

This was reiterated by Stephen Phipson, Chief Executive of Make UK, who said: “Government cannot escape the fact that manufacturers are facing eye watering cost increases that are pushing many towards a tipping point and companies would have been looking for substantial business support measures to help alleviate these. In particular, the lack of action on energy costs for business is especially hard to fathom.”

Phipson highlighted that the statement, given on the second anniversary since the first lockdown began, had very little to support the manufacturing sector that “kept working throughout the pandemic, ensuring that there was food on the shelves, PPE for our NHS and medicines for the people who needed them”. 

Phipson added: “The promise of jam tomorrow with consultations through the summer and action in the Autumn will also be of little comfort for many who would have liked to have seen action and support immediately.”

He concluded that manufacturers have yet to see a long-term economic vision that has enterprise, growth and innovation at its heart: “Without adding a turbocharger for growth the Government risks leaving the economy spluttering along as a two stroke.”