Steve Clarke, Managing Director of cable harness, wiring looms and panel assembly specialist Teepee Electrical, looks back on a ‘growth budget’ that could actually curtail manufacturing ambition.
“Today’s Budget undoubtedly curtails ambition. As a business committed to progress, we have quickly calculated that some of the tax rises announced today will add approximately £140,000 annually to our expenses, inevitably driving up our prices in an already competitive market with little scope for us to pass on.
While we fully support fair wages and the need for appropriate compensation, the triple dose of National Minimum Wage, increase in employers’ national insurance contribution and starting rate reduction, will be a difficult pill to swallow for a lot of manufacturers.
The Chancellor talked consistently about growth, yet some of the decisions she has made today will negatively influence critical decisions around spending on new technology and hiring.
On a more positive note, investment in electric vehicles, rail and general infrastructure should benefit a lot of our customers, who purchase specialist assemblies and harnesses from us.
However rather than this being the major boost they want it to be for the supply chain, an uptick in business for us in these areas will simply sustain our current position as opposed to job creation and economic vitality.
At Teepee Electrical, we have long focused on pushing forward and growing our business alongside a remarkable team, doing our best to mitigate factors outside of our control. This will remain central to our mission, but today’s Budget does pose significant challenges to our commitment.”
