Scrappage scheme for old machinery and equipment?

The organisation says that the scheme should run hand-in-hand with a programme to encourage UK consumers to buy a new, more environmentally friendly cars through a government-funded scrappage scheme. This, it says, would deliver a much-needed boost to the country's automotive industry. A voucher-style system where Government gave a contribution of around 5,000 for each new car, would deliver a healthy incentive for households to upgrade, with industry contributing the trade-in value of the old model. Make UK goes on to offer the view that this double cash injection could give businesses the head start they desperately need as they struggle to replenish decimated order books and get production up and running again.

Up-front labour and raw material costs are proving a block to many factories which have been forced to close, or to run on lower capacity over the past few months since the outbreak of the pandemic. Others which shifted to making much needed medicines, sanitisers and vital medical equipment to support the NHS and combat the spread of the disease also face considerable costs as they revert their factories back to normal production.

Make UK CEO Stephen Phipson says: "The challenge faced by manufacturers as they start to rebuild their businesses and bring staff slowly back into the workplace is vast. Supply chains have been decimated and order books are in the worst state in decades. To survive, businesses will need to take every advantage they can of the latest technologies and equipment to boost productivity to get back on track in the coming months. Industry is grateful for the help Government gave them during the crisis, but now as we come out the other side, we need to look to them for innovative schemes which can help businesses recover quickly, and building their technological armoury is an important weapon in this battle. These initiatives will not only help businesses get back on their feet, but would at the same time tackle important environmental issues which are important to Government as we work together to build a greener Britain fit for the future. The UK's manufacturing sector has always been agile and has shown in the last few months just how quickly it can adapt but as a growth providing sector we must emerge stronger and better equipped to compete in the global trade environment to be able to do our bit effectively in the country's economic recovery".

Go to www.makeuk.org for further information.