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.

2011 Budget and UK manufacturing (681 k)