Exports are the Missing Link

The Chancellor has missed the chance to create jobs and improve the balance of payments by stimulating exports, says the Engineering Industries Association (EIA), the voice of SMEs in Engineering.

President Sir Ronald Halstead said: “The EIA is broadly supportive of the measures announced by the Chancellor and feels that they will be beneficial to the Country. However members are concerned at the lack of measures to stimulate exports, and expand British presence in overseas markets – particularly by SMEs. Exports will be critical to expanding the economy, creating jobs and improving the balance of payments.”

Commenting on specific aspects of the Budget he added that the EIA welcomes the plans to reduce Corporation Tax from 25% to 24% and the small companies rate to 20% and also the retention of R&D tax credits.

The reduction of the annual level of Capital Investment Allowance from 100,000 to 25,000 was a disappointment but many small companies will still benefit from this lower level.