However, there have been some cautionary briefings coming out of the Treasury in the past few weeks, with talk of GDP and productivity being revised down further. So what can senior leaders in manufacturing, energy and construction expect from Osborne’s big red box on Wednesday?
1 Further clarification on the Apprenticeship Levy
It’s fair to say the Apprenticeship Levy isn’t one of Osborne’s more popular policies among employers. Some see it as little more than a 0.5% tax on those with a pay bill of more than £3 million.
Concerns also remain around how UK employers based outside of England will benefit, with devolved training budgets meaning getting resources to them would appear to be an arduous process.
Bodies like the Recruitment and Employment Confederation (REC) have been meeting with government officials to put forward the case for employers and seek clarification on matters such as whether agency workers will receive any training benefits from the levy. On Wednesday we’ll see how fruitful these sessions have been.
2 Accelerated Business Rates reform
The Apprenticeship Levy forms one third of a now infamous trio of costs imposed on UK business in the past 12 months; the others being the National Living Wage and rising Business Rates. As the costs associated with the first two are now set in stone, many business groups are putting pressure on the chancellor to offer some relief with the third.
The EEF has proposed scrapping current legislation that means Business Rates are higher for any company with plant and machinery equipment. Four in 10 manufacturers said they would increase investment in equipment if that were the case, according to an associated EEF poll.
3 Renewable investment
This may be less something that industry expects and more a move that many are calling for following a number of recent setbacks.
The solar industry was up in arms last month when the sub-sector was removed from the Renewable Heat Incentive scheme from 2017. In a last-minute attempt to get Osborne on-side, the Green Alliance has published paper Renewables investment: building on UK strengths at the 2016 Budget, setting out a way for the government to support the sector without breaking the bank.
The renewables industry will be hoping for some much-needed relief in this budget after some painful policy decisions in recent years.
4 Further government cuts
Osborne has been preparing people for bad news this week by warning he will need to cut the equivalent of 50p for every £100 of government spending – which equates to around £4 billion per year.
While this may not initially seem relevant to manufacturing, the last time cuts like this were made it spelt the end of the Manufacturing Advisory Service (MAS). So any departmental spending cuts can mean trouble for industry in the form of support for training and R&D being withdrawn. Everyone will have their fingers crossed that we don’t have another painful closure like MAS this time.
5 Rabbit in the hat
The chancellor has made a name for himself by pulling out a rabbit from the hat in the majority of his budgets. The most famous of these was the National Living Wage (NLW) last year. So what could it be this time?
Well with oil prices continuing to plumb new depths, there could be something to do with fuel levies changing further. And pensions are another area that you feel the chancellor has not finished reforming.
Unfortunately for industry, the rabbit is rarely for them. While the NLW will provide much-needed cash for low-paid workers, many feel it imposed too harsh a burden on employers. So if there is a rabbit in Osborne’s hat, don’t necessarily expect it to be friendly to the country’s industrial employers.
What are your views on the Budget? Let us know through hroberts@findlay.co.uk and you could feature in April's edition of Works Management.
