Manufacturing 'is a proven driver of economic recovery'
24 August 2011
Posted by Michelle Devonshire
Manufacturing firms should be given corporation tax holidays, as this sector is crucial to the UK's economic recovery, an expert has said.
Martin Bell, a corporate tax partner at BDO, told Camagonline.com that investment in job creation and manufacturing is essential if the economy is to gather pace.
He pointed out that China has a policy where priority sectors are given targeted tax holidays and there is no reason why a similar system would not benefit the UK.
"It is absolutely the case that the manufacturing sector is a proven driver of economic recovery. Any proposals to provide fiscal encouragement for manufacturing investment should most definitely be given proper consideration," Mr Bell told the news provider.
He added that while some may think cutting taxes at the present time is counter-productive, it needs to be seen in the wider context, with corporate and employee taxes helping to cushion the loss.
According to Markit and the Chartered Institute of Purchasing and Supply, UK manufacturing output fell sharply in July.