Member Article

Working out if the Budget will benefit manufacturing SMEs...

Gary Seale, is Managing Director of Shropshire-based iDry, a wall mounted, full body dryer that is being used in care, hotels and luxury properties.

The experienced industry veteran looks back at yesterday’s budget and believes, that whilst there was something in it for innovative manufacturers, SMEs might still miss out on the best support.

“For a SME manufacturer that thrives on innovation, there were elements in the budget that should benefit our business.

The enhanced R&D tax credit scheme has the potential to deliver more back to the company, but, like with most introductions, there’s a potential hurdle to cross as 40% of our turnover would need to be directed into Research and Development. As it stands, I’m not sure we’d even qualify.

At first glance, increasing the Annual Investment Allowance to £1m is an improvement on Super Deduction Tax and should release some of the brakes that have been put on company investment.

We will certainly look at how we can take advantage of this, with demand for our ‘iDry’ body drying innovation growing rapidly, meaning we’ll need to ramp up production quickly and invest in larger assembly lines.

I was pleased to see more imaginative ways to get people back into work and, hopefully, that will go some way to easing the skills shortage that is holding many firms back.

We’ve wanted a part-time admin assistant for some months now and, despite an above average wage package, we didn’t get one applicant. The childcare funding improvements could certainly bring more candidates to our front door.

Other pleasing aspects were freezes on fuel and the long overdue commitment to support the men and women who have served our country.

Was it a brave and bold budget? I’m not sure, but it could have been a lot worse.“

This was posted in Bdaily's Members' News section by Russ Cockburn .