ADS outlines Autumn Statement recommendations to assist UK businesses post-Brexit
The trade organisation for the UK's aerospace, defence, security and space industries, ADS, has outlined Autumn Statement recommendations to support UK businesses post-Brexit.
The Autumn Statement is an important opportunity for government to send a strong signal about the UK’s commitment to maintaining a competitive business environment and sustaining our world-leading industries. The decision to leave the European Union has created uncertainty, the Chancellor can help overcome business concerns and encourage investment in advanced manufacturing.
ADS, trade organisation for the UK’s aerospace, defence, security and space industries, made a submission to the Chancellor calling for three recommendations to enable these strategically important industries to continue increasing their contribution to national prosperity and security:
- Invest in successful sectors strategies with a boost of £50m annually for the Aerospace Technology Institute – a key initiative of the Aerospace Growth Partnership
- Support UK supply chain companies seeking to invest in their own productivity and competitiveness
- Use targeted tax reforms to encourage investment in new innovation and technology, including:
- Raising the Annual Investment Allowance to £500k, this has previously reduced the cost of capital and increased cash flow for SMEs and Midcaps
- Raising the main rate of capital allowances to 25%
- Reintroducing the Industrial Buildings Allowance and reforming business rates to remove plant and machinery from valuations.
Paul Everitt (right), CEO of ADS Group said: “We are looking for the Autumn Statement to help sustain economic recovery and ensure that companies can continue to prosper in highly competitive global markets.”
“ADS has urged the Chancellor to invest in creating the right environment for industry to succeed by using targeted reforms to encourage investment now in innovation and technology and boost the UK’s ability to compete in tough international markets through support for industrial strategies.”
During the past six years, the government’s sectoral approach to industrial strategy has delivered significant success serving as a genuine collaboration between government and industry providing increased investment in R&D, skills and productivity. The aerospace industry, supported by the Aerospace Growth Partnership (AGP), has seen 40% growth since 2010, with turnover at £31 billion.
The anticipated rise in global aircraft traffic over the next 20 years looks set to drive demand for more than 33,000 commercial aircraft worth $5.2 trillion. With the largest aerospace industry in Europe, second globally to the US, UK companies have a major opportunity to increase their share of this lucrative market.
The Aerospace Technology Institute is helping encourage private sector investment in valuable R&D programmes; however it currently receives far more high quality bids than it can resource. Extra government funding would bring a major boost to UK capability and help UK businesses prepare for major new aerospace opportunities.
The ATI will also fund the continuation of the National Aerospace Technology Exploitation Programme (NATEP), currently supported by the Advanced Manufacturing Supply Chain Initiative, which supports undeveloped aerospace technologies. NATEP has committed funding to 114 collaborative projects with 268 companies, 74% of which have been located outside London and the South East, and creating more than 1,200 jobs.
The AGP is also seeking the Chancellor's support for a major competitiveness improvement programme to help the UK supply chain to stay ahead and win new business. The aerospace industry has been working closely with colleagues in the automotive and rail industries to develop a high impact programme that can address the challenges in strategically important sectors and help boost productivity and secure new business.