Today’s Budget recognised the significance and importance of a rebalanced, export-led economy, by taking steps to encourage international investment in R&D and manufacturing in the UK through considered taxation reforms and incentive programmes.
“The Chancellor’s actions to improve R&D tax credits and develop a catapult for transport systems and future cities will help trigger substantial extra business investment in the years ahead,” said Paul Everitt, SMMT Chief Executive. “The UK automotive industry is attracting major levels of investment and creating real opportunities for engineering and manufacturing businesses.
“The proposed independent review by Lord Heseltine into the role of government in delivering pro-growth policies provides a welcome next step in establishing a comprehensive UK industrial strategy. Government’s continued support for low and ultra-low carbon vehicles is also an essential part of delivering on its environmental and industrial ambitions.”
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.
The automotive industry is a vital part of the UK economy accounting for £49 billion turnover and £10 billion value added. With over 700,000 jobs dependent on the industry, it accounts for more than 10% of total UK exports and invests £1.3 billion each year in automotive R&D. Since 2000, huge strides have been made to reduce the environmental impact of its products throughout the life cycle. Improvements in production processes mean that since 2000, energy used to produce vehicles is down 28%, water use has been cut by 40% and 78% less waste enters landfill sites. Average new car tailpipe CO2 emissions have also been slashed and are down 23% compared with 2000 to 138g/km CO2.