The mini-budget labelled as the 'growth budget' aimed to create a stimulus in business and motivate the nation's wealth creators. It's undoubtedly got a mixed reaction from the public, with those cautiously optimistic, and on the other side of the scale, those who see it as a tax cut for the rich and further widening the equality divide.
Some have praised the budget as being bold and ambitious. The government has set out its vision for an economy that is more dynamic, productive, innovative and resilient.
What does the budget mean for manufacturing?
When we talk about wealth creation, people don't automatically think of the manufacturing sector, yet this is a sector that indirectly employs far more people than it's given credit for. Manufacturing became leaner by outsourcing many core functions such as logistics, warehousing and other tertiary services into a more dispersed supply chain. Despite representing a nominal 11% of the GVA, research has proved this is quite misleading, with some estimates putting the indirect and direct output closer to 30%.
Manufacturing also equates to nearly 50 per cent of everything the UK exports, making it a significant contributor to total GDP.
Timely
With volatile material prices, supply shortages on critical products, rising energy prices, and pressure to increase salaries, it was crucial that businesses are incentivised and motivated to battle for the nation's prosperity.
Jason Pitt, Director of Made in Group, said, "I am cautiously optimistic about the mini-budget, and I welcome the short term energy caps. That said, this is a gamble. The government's ability to raise money in the future via bonds and its currency value is essential, so we shouldn't ignore the market reaction entirely.
"Regardless of any immediate easing of financial pressure, I would recommend that businesses, especially those in industry, begin a complete stack energy business plan with SWAT and mitigation plans."
A number of made members are already busy helping other members get their energy strategy in place, from solar, reduction of energy consumption, sensors to make factories more efficient and the Made Energy Club, the Made in Group is prioritising these conversations and ensuring these companies are given a good platform to educate the membership.
New discussion groups
There is also a new format for the twice-monthly virtual breakfast mornings, 'Energy Efficiency' will be one of the discussions taking place on the 28th of September, with 12 members participating.
"For those that are concerned about corporation tax, the 25% figure was too high, to begin with, making the nation less attractive to investors, and in a recessive period, businesses will likely look to reinvest and create a buffer rather than massive dividends, so the cut on corporation tax is not as risky as it first appears.
Members in the media
The cap on energy rises a huge deal, and many manufacturers welcome the budget. One of these members was RSD Pressings, based in Cannock, who was visited by Midlands Today to get their thoughts on the budget's impact on manufacturing. Daniel Burton, MD, said, "Companies like ourselves that invest heavily in new machinery to stimulate new jobs, it's a trench of money that we can look at and invest appropriately."
Made in the Midlands patron Morgan Davies, Partner at Prime Accountants in Birmingham, said:
"This budget will give some much-needed good news to businesses and business owners. With the fuel crisis and rising interest rates, the cancellation of the planned increase in corporation tax will be very welcome.
However, the markets have not reacted well to the budget, with the pound falling immediately. Those who import will see prices increase even more, and with the threat of more interest rate rises, there is a chance that over the next few months, the good news for some today may be eroded by further costs in the future.
Time will tell if the new Chancellor has got this right or if it's a gamble that may cause longer-term problems."
There was also political support for the budget in North Yorkshire
Boosting the economic potential of North Yorkshire through a raft of special measures to bring forward infrastructure schemes has been cited by Thirsk and Malton MP Kevin Hollinrake in his assessment of today's mini-budget.
Chancellor Kwasi Kwarteng announced the creation of Investment Zones aimed at developing local businesses.
The Chancellor told parliament this morning he was discussing with 38 Local and mayoral combined authority areas in England, including the Tees Valley, the West Midlands and Hull.
Under the brand-new initiative, each Investment Zone promises generous, targeted and time-limited tax cuts for businesses, backing them to increase productivity and create new jobs.
Made in the Midlands and Made in Yorkshire is organising its annual visit to Westminster on the 11th of October. If you wish to join us, please visit www.madeinthemidlands.com/login or madeinyorkshire.com/login and go to the events section of your dashboard and add yourself to the guest list. Tickets are limited, so please book this week to avoid disappointment.