IOM3 responds to Spring Budget 2024
Chancellor Jeremy Hunt has today (6 March) presented his plans for the economy to Parliament in the 2024 Spring Budget.
In the ‘Budget for Long Term Growth’ the Chancellor focussed on his plans for tax cuts, public services and investment.
Matters relevant to IOM3 members’ work announced in the budget include the following:
Advanced manufacturing & life sciences
- Confirmation of over £270 mln of combined government and industry investment (announced yesterday) in zero-carbon aviation and automotive R&D projects.
- Confirmation of £92 mln joint government and industry investment to expand facilities to manufacture medicines and diagnostics products.
- Reiteration of plans for the £50 mln Apprenticeship Growth Sector pilot.
Green industries
- Up to a further £120 mln for the Green Industries Growth Accelerator (GIGA), to support expansion of low carbon manufacturing supply chains across the UK.
- Of the over £1 bln of total funding available, up to £390 mln is expected to support supply chains of offshore wind & electricity networks and the same amount for supply chains of Carbon Capture Utilisation and Storage (CCUS) and hydrogen.
- Publication of the full parameters for the Contracts for Difference Allocation Round 6 (AR6), including setting budget for the round at over £1 bln.
- To secure prospective nuclear sites, government has reached agreement on a £160 mln deal with Hitachi to purchase the Wylfa site in Ynys Môn and the Oldbury-on-Severn site in South Gloucestershire.
Research & innovation
- £14 mln to boost the UK’s public sector research and innovation infrastructure.
Investment
- Draft legislation to be published to extend full expensing to leased assets ‘when affordable to do so’.
- A £200 mln extension of the Growth Guarantee Fund to support SMEs to invest and grow.
- A new UK ISA and British Savings Bonds, supporting investment in the UK.
Planning & energy
- Commitment to publish the consultation on a new accelerated planning service for major commercial applications.
- £3 mln to match industry-led funding for a skills and education programme to attract more people to take up roles as local planners in planning authorities.
- The Energy Profits Levy sunset clause will be extended from March 2028 to March 2029 plus confirmation that legislation will be brought forward to end the Levy if oil and gas prices drop below the levels set by the Energy Security Investment Mechanism before then.
The budget documents highlight that the next Spending Review will come after the upcoming General Election.
IOM3 CEO Dr Colin Church FIMMM CEnv said, ‘The continued focus and commitment to advanced manufacturing, green industries and life sciences is welcome. These are sectors critical to the transition to a low-carbon, resilient and resource efficient society. A successful transition is reliant upon the professionals working in and coming into these and related industries. A gap in today’s announcements is therefore the necessary long-term investment in skills and support for development of the current and future workforce.’
