Autumn Statement 2023: Absence of Industrial Strategy an own goal for the Chancellor

The Chancellor’s Autumn Statement highlighted the continued lack of an industrial strategy will undermine today’s package for UK manufacturers.

The Chancellor’s £4.5bn support for strategic manufacturing industries is eye catching, however the devil is in the details. How and when these funds will be delivered are key questions that must be addressed, particularly with next year’s likely change in government. As it stands, many will remain sceptical if the new investment will reach the sector in time.

While the monetary boost is welcome, the most important takeaway from the Autumn Statement is the continued absence of a comprehensive, long-term, industrial strategy for the sector. Manufacturers will also be particularly concerned at the revamped R&D tax credits scheme that merges the R&D Expenditure Credit (RDEC) and SME schemes which is almost certain to be less generous to SME’s. While the rate at which intensive loss-making companies are taxed has been reduced from 40% to 30%, it still seems too high given the economic headwinds facing businesses next year.

The government cannot keep providing short term solutions in an attempt to distract from the glaring lack of long term vision. This budget should’ve given manufacturing the one thing it didn’t have - room to plan.