New package of innovative help for manufacturing needed to supercharge technological comeback
Scrappage scheme for old IT, plant and machinery equipment
Scrappage scheme for cars to boost household spending
Today Make UK highlights the case for Government to help manufacturing recover from COVID-19 by implementing a new scrappage scheme for old IT, plant and machinery equipment to incentivise cash-strapped firms to invest in automation and digitisation to boost output and exports.
The scheme should run hand-in-hand with a programme to encourage UK consumers to buy a new, more environmentally friendly car through a government-funded scrappage scheme, delivering 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.
This double cash injection would give businesses the head start they desperately need as they struggle to replenish their 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 run on lower capacity over the past few months since the pandemic outbreak. Others which shifted to making much needed medicines, sanitizers and vital medical equipment to support the NHS and combat the spread of the disease also face considerable costs as they revert their factories to normal production.