John Leech, UK Head of Automotive at KPMG comments: “Despite little room for manoeuvre, the Chancellor has delivered a number of important stimuli that will be welcomed by automotive manufacturers. By reducing corporation tax to 20% from 2015 the UK will have the most competitive tax regime amongst the automotive producing nations in Western Europe. The Chancellor also announced an increase in the rate in the above-the-line tax credit to 10%, a measure that will reward and encourage investment in R&D. New tax incentives for manufacturers of ultra-low carbon vehicles will hopefully help to cement this area of strength within the UK’s automotive industry.”
“Underlining his commitment to manufacturing as a key driver of growth, the Chancellor is injecting £500 million into key sectors such as automotive as part of the Government’s Industrial Strategy. The automotive sector is now at the forefront of the Government’s emerging industrial policy, most notably through the successful establishment of the Automotive Council, which has brought Government and the industry together to better promote the UK industry. It is this more collaborative, hands-on style of Government which has informed today’s policy announcements and is especially valued by the industry.”
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