2011 Budget and UK manufacturing
A summary of the Budget by the IET Manufacturing Policy Panel
The key measures relating to manufacturing are:
- the main rate of corporation tax is reduced by 2% to 26%;
- a moratorium exempts micro-businesses and start-ups from new domestic regulation for three years;
- the rate of research and development tax credit for SMEs (small and medium enterprises) is increased to 200%;
- the first Technology Innovation Centre in high value manufacturing is launched;
- the limit for capital allowances short life assets election is extended from four to eight years;
- the Green Investment Bank is confirmed, with an initial capitalisation of £3bn;
- 24 new University Technical Colleges are to be established by 2014; and
- an enhanced Manufacturing Advisory Service is launched with additional funding of £7m.
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