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2011 Budget and UK manufacturing

A summary of the Budget by the IET Manufacturing Policy Panel

The key measures relating to manufacturing are:

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