Make UK sets out ‘shock and awe’ proposals to protect manufacturers

Survey data from the manufacturers’ organisation shows the impact of rising energy costs on companies, along with the cumulative effect of increases in other expenses including National Insurance Contributions and the proposed increase in Corporation Tax, which from April 2023 will increase to 25 per cent for companies whose taxable profits exceed £250,000.

A fifth of companies believe energy costs will be an issue for two years, whilst 74 per cent of manufacturers surveyed said they are facing increased transportation costs and 82 per cent reported transport disruption as an issue for their business. Four in ten companies surveyed said that disruption at the Dover Calais crossing was causing either catastrophic or major disruption to their business.

Input prices are currently at 24 per cent, the highest since records began. According to S&P Global/CIPS UK Manufacturing PMI for July, input prices for manufacturers increased across – but were not limited to - chemicals, electronics, metals, packaging, and timber as well as transportation and energy. The monthly PMI report cited the war in Ukraine, exchange rates, global inflationary pressures and input shortages as adding to increased purchasing costs.