The business and manufacturing support policies announced in the Autumn Statement by the Chancellor have been welcomed by the IPIA, which believes they should collectively work to relieve a degree of economic pressure and stimulate investment for the print and paper industries.
Chairman of the IPIA, Charles Rogers, said: "In particular, we are very heartened to see the confirmed announcement of £11bn investment per year in UK manufacturing - through making the 'Full Expensing' scheme permanent. This means that print industry businesses and the supply chain that invest in the UK will reduce their tax by up to 25p for every £1 they spend on plant and machinery.
"The IPIA has focused on advocacy for the extension and expansion of this specific policy since April 2023 - across multiple tiers of Government - and we are very hopeful this will strengthen market confidence and stimulate long-term sector growth."
The IPIA also identified the following policy announcements as being potentially beneficial for the UK print and paper industries. Each it is hoped will contribute to strengthening the hand of UK manufacturing, and are in line with the calls from the IPIA for such stimulus policies:
- The £4.5bn investment in advanced manufacturing and green energy in the form of subsidies and grants
- New simplified research and development tax relief - combining the existing expenditure, credit and assembly schemes and a cut in tax by 6 percent for firms that make losses following research and development expenditure
- £50m in funding to increase support for business taking on apprentices - particularly in an engineering capacity
- One year extension to the existing 75% business rates relief for retail, hospitality and leisure (This will support a key breadbasket print buying sector and hopefully work to uncork marketing investment)
- A freeze on the small business multiplier for business rates
- A 2% point cut to national insurance
Rogers concluded: "Our work to advocate on behalf of the UK print and paper industries will continue. We urge any sector businesses that wish to provide feedback on trading conditions or the impact of Government policies to do so. This information is kept confidential and is passed directly to The Government Department for Business and Trade."
Just prior to the Autumn Statement the IPIA had released a statement saying it was looking forward to it and the announcement of expanded business tax relief.
Over the course of 2024, the IPIA has worked to educate central Government, The Department for Business and Trade (DBT), and the Treasury on the critical need for the expansion of Capital Allowances tax relief (also known as Full Expensing) - among a range of other structural and strategic support recommendations. The policy allows companies to claim back 25p for every £1 invested in the UK, significantly reducing the cost of machinery and supporting infrastructure investment.
Rogers said: “The IPIA has consistently engaged with Government on multiple levels this year to make the case for print and paper - extolling its immense contribution to the economy, society and culture - while advocating for a package of strategic and structural support to support its long-term growth. We hope, following extended consultation, that the Autumn Statement will confirm policies that will provide much needed business support and create longer-term stimulus.”
IPIA industry advocacy activities have included: weekly meetings with the DBT; a meeting between Rogers and special advisors to the Prime Minister in April; Rogers’ attendance at a Business Leaders Reception at No10 in May with the Deputy Prime Minister Oliver Dowden; and leading a delegation of representatives from the print and paper industries at No 10 in July, where a discussion was held with a senior business and economics advisor to the Prime Minister on the contribution of print and paper to the UK economy.
The IPIA's economic stimulus brief was sent to the DBT by special advisors at No10, where it was consulted on before being sent to the Treasury for funding consideration. The IPIA then sent a letter directly to the Chancellor Jeremy Hunt MP on 30 October, urging expansion of the Capital Allowances tax relief policy - its top structural economic stimulus request. The receipt and consideration of the letter was confirmed by Government officials.
Rogers ended: "The level of engagement and proactive consideration of our support and stimulus recommendations has been heartening. We look forward to much-needed policies to provide relief in the short-term, and growth for the UK print and paper industries in 2024."