ETB calls on government for procurement and tax rethink
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A new Engineering and Technology Board (ETB) paper published yesterday (28 July) has detailed the changing face of UK manufacturing, and called on the government to back its emerging technologies initiative through a restructuring of procurement and taxation.
To maximise the impact of key technologies such as advanced materials, electronics, photonics, electrical systems, biosciences, nanotechnology, high value manufacturing and ICT, the paper calls for broader parameters in government procurement, and the overhaul of the tax system to incentivise investment in technology.
Specifically, it recommends:
• Structuring tenders in such a way that small business would be eligible to compete
• Overhauling the taxation system so that tax deductions could be made to cover the costs of investment in technology, research, capital, and skilling the workforce.
The paper also states that greater emphasis must be given to design, customisation and intangible services to in order to maximise on the UK's strengths and add value to new manufacturing and its contribution to UK GDP, as well as urging manufacturers to be more aware of large resource efficiency savings.
ETB chief executive Paul Jackson (pictured) said: "The UK Exchequer currently spends £175 billion or approximately £1 in every £4 on procurement. Just think how much could be achieved if this funding was invested strategically in growth technologies such as photonics and advanced materials."
