Industrial Strategy set to bring re-shoring bonanza

21 October, 2024

Looking ahead to the Autumn Statement, more than half of companies (56%) say reducing Corporation Tax would have the biggest impact on investment, closely followed by the expansion of capital allowances to software (53%) and the extension of full expensing to leased and second hand machinery (46%). Separately, almost a third of firms (30%) said that high interest rates were the biggest obstacle to raising finance adding to pressure on the Bank of England to cut rates at its meeting next month.

As well as analysing the impact of Government policy, the survey also provides a comprehensive view of investment trends across UK manufacturing. It shows that plant and machinery, along with labour, remains the top priority for companies’ investment in the next twelve months (53% and 52% respectively). Amid the ongoing debate about the investment performance of UK industry compared to peers, almost two thirds of companies (64%) invest up to 10% of their turnover in plant and machinery with a further quarter (26%) investing between 10% and half of turnover.

Furthermore, almost three quarters of companies (72%) invest up to 10% of turnover in R&D, while almost one in five (18%) invest between 10% and half.

The survey of 209 companies was conducted between 27 July and 21 August.

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