Report urges support for export-led recovery

Although new chancellor George Osborne has promised tax support for manufacturing, government loans earmarked for industry are being reviewed.

With government funding for industry thought to be at risk, a new report published by business advisors and accountants BDO LLP urges both government and business to focus on exports if the UK is to forge a prominent role in the new global landscape. The report, ‘Transitions – The New Economic World Order’ outlines the opportunities open to the UK in the new economic world order and was developed alongside an expert panel convened by BDO.

Although new chancellor George Osborne has promised tax support for manufacturing, government loans earmarked for industry are being reviewed. In addition, BDO reckons many executives are limited in their outlook, yet to prepare for the changing global landscape. Some 85% of UK board members admitted they are not actively preparing for competition from the next 11 countries that will become economic powerhouses over the coming five years, according to a new poll commissioned by BDO.

Peter Hemington, corporate finance Partner at BDO LLP commented: “Businesses have to look east – the Eurozone’s current plight confirms that relying on what’s just outside our front door is no longer enough.”

Tom Lawton, head of manufacturing at BDO LLP added: “The UK is at a crossroads on the global map. While we welcome George Osborne’s plan to protect manufacturers under a new corporation tax framework, there needs to be a clear strategy that rebalances the economy and encourages exporting. This means removing red tape, providing specific support to midmarket manufacturers and supporting emerging technologies while not forgetting the UK’s traditional industrial base.”