We have rounded up some of the reaction relating to the engineering and manufacturing landscape.
Stephen Phipson, chief executive of Make UK, said: “This was a bold statement by the Chancellor who has worked hard to understand industry’s needs and deliver a transformational strategy designed to turbo charge investment.
“Manufacturers will applaud this focus on addressing the painful achilles heel that has troubled the economy for decades. The biggest factor that companies want when planning investment decisions is certainty in policy and this has now been provided by making full expensing permanent.
“Industry will also welcome measures to boost engineering apprenticeships and stimulate advanced manufacturing, which will be vital in boosting high value growth and high skill employment in the economy of the future.
“The Chancellor has worked closely with Make UK and promised an autumn statement with manufacturing at its heart. He has delivered on that commitment and it is now down to industry to pick up the gauntlet.”
Fhaheen Khan, senior economist of Make UK, said: “Making full expensing permanent shows the Chancellor is serious about promoting business investment and bringing an end to continual, short term policy sugar rushes in favour of a stable and steady approach to improving productivity and growth.
“Manufacturing is the most investment intensive sector with the majority of companies having long term cycles of five to seven years. This change reflects that and will provide companies with the certainty and stability they have long been craving for, while making the UK a top five nation in its attractiveness to global corporations who are looking for the best places to invest.”
Verity Davidge, director of policy, said: “The Chancellor’s recognition of the value of engineering apprenticeships is a vote of confidence in the manufacturers across the country providing these opportunities. £50 million of investment in a pilot scheme geared towards increasing the number of apprentices in engineering and manufacturing, as well as other growth sectors, is an important step forward in reversing the recent decline in starts.
"It will also provide the right support for the many manufacturers who have long called for better support from the Government to invest in training. We look forward to continuing our engagement with the Government on taking this pilot scheme forward.”
Dr Hilary Leevers, chief executive of Engineering UK, said: "The chancellor highlighted the importance of skills in his autumn statement, yet there was little to address widespread issues in the skills systems. We welcome the modest announcement of £50 million for engineering apprenticeships, but are concerned that this is limited to a two-year pilot to explore ways to stimulate training in these sectors and address barriers to entry in high-value standards.
“As outlined in our recent report ‘Fit for the Future’, we need large scale investment in getting more apprenticeships for young people off the ground now and to ensure that the country has the engineering and technology workforce it needs for the future. We urge the government to take a bolder approach.”
IET head of policy Stephanie Baxter said: “It is very welcome that the Government has recognised the importance of engineering apprenticeships to filling critical skill gaps in the UK innovation and technology sector.
“In addition to the £50m investment through the Apprenticeship Growth Sector Pilot announced in the Autumn Statement, engineering employers say they need agility within the fund for upskilling and reskilling to allow their workforce to be agile and adaptive to new technologies such as AI and Digital Twins.
“The Institution of Engineering and Technology is therefore calling on Government to allow employers to use unspent levy funding to provide short tailored courses (micro-credentials) in cutting edge technologies.
“It is also important that the Chancellor has committed to wider infrastructure investment to support the UK meet its net-zero targets. However, manufacturers in the UK are facing critical skill shortages in the face of rapid technological advancement: 21% report skill shortages in adapting to new equipment. This hinders our ability to harness digitalisation and new technologies for innovation. Therefore, government must ensure that the investment addresses these skill gaps to gain maximum benefit from the investment.”
Tony Hague, CEO of PP Control & Automation, a strategic outsourcing specialist working with 20 of the world’s largest machinery builders, said: "I’ve been relentless for many years about the need for the UK to invest in more automation and technology and the ‘full expensing’ announcement today could well be a significant driver in ‘tipping the balance’.
"It should promote much needed investment to drive productivity and increase efficiencies, offsetting rising input costs around materials, energy, transport, and labour.
"Like all announcements, there is a ‘but’. If the Government changes in the next election, will this important business decision be reversed by new Ministers keen to make their own mark on proceedings? This is what really worries me with no coherent industrial strategy in place.
"For UK manufacturing to thrive, we need long-term thinking and a stable/tax efficient environment.
"Getting people back to work is key, which is why I am all for the £50m apprenticeship boost (devil will be in the detail) and the £2.6bn funding to help the long-term unemployed and those suffering with sickness and illness.
"Hunt suggested this could deliver 200,000 people back into the workplace. That seems a huge number but would certainly be welcomed by employers fishing in a shrinking recruitment pool.
"In summary, the Autumn Statement was a huge improvement on the last mini budget – at least I never thought ‘oh my god, it’s like a Liz Truss moment.”
UK Steel director general, Gareth Stace, said: “It is disappointing that the Chancellor did not use his Autumn Statement to announce a UK CBAM and a timetable to implement it by 2026. Imported steel should also pay for its carbon footprint as we have done for years. With over 90% of global steel production facing no carbon cost, it is only right to introduce a carbon border policy to create a level playing field on carbon pricing. It is a missed opportunity not to set out the Government’s plans for its own carbon border policy.
“As UK steelmakers are announcing plans for green steelmaking, a UK CBAM will be essential to these investments, making sure that low-emission, green, UK-made steel is not undercut by high-emission, imported steel, which has not faced carbon costs.
“Delaying the confirmation of a UK carbon border policy will risk the UK playing catch-up with the EU on timetables. The steel industry needs certainty, not further delays.”
