SMMT: Autumn Statement will boost UK competitiveness

Date: 30/11/2011

The UK chancellor's Autumn Statement will provide a boost to the competitiveness of the transport industry, according to the Society of Motor Manufacturers and Traders (SMMT).

Welcoming the plans laid out by George Osborne, the SMMT highlighted proposals to review the research and development (R&D) tax credit system, which it believes will boost manufacturing not just in automotive sector, but in the wider economy as well.

This revision, it says, will help companies manufacturing automotive technologies to capitalise on the UK's global significance and generate more investment, as well as safeguarding jobs.

Paul Everitt, chief executive of the SMMT, said: "Reform of the R&D tax credit system propels the UK into a new league of global competitiveness sending a strong signal to international investors."

The UK's automotive industry accounts for approximately £49 billion of turnover and is responsible for employing 7,000 people, as well as accounting for more than ten per cent of total UK exports.

According to the SMMT, some £1.3 billion is invested annually in R&D for the sector.

Posted by Mary Treen