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Manufacturing (Investment)

Volume 555: debated on Thursday 20 December 2012

Manufacturing is crucial to economic recovery. The autumn statement announced measures to encourage greater investment in manufacturing, including a significant increase in the annual investment allowance from £25,000 to £250,000; £310 million for the regional growth fund; and an extra £120 million for the advanced manufacturing supply chain initiative. The House will also welcome the announcement by Nissan yesterday of a £250 million investment in a new premium brand car to be built in Sunderland, which the Government expect to support under the regional growth fund.

The recent increase in capital investment allowances will create a massive boost for small and medium-sized manufacturing businesses in south Staffordshire and the west midlands. What assessment has the Minister made of the impact that that will have on manufacturing businesses across the United Kingdom?

I expect the increase in capital allowances to have a positive effect. Under this Government, manufacturing share of gross domestic product is rising, but under the previous one nearly 1.7 million manufacturing jobs were lost, and our manufacturing share of GDP declined. The measures we announced in the autumn statement, together with the measures we have taken to rebalance our economy and put our public finances in order, leave British business very well placed to continue the recovery.

Order. We have already heard from the hon. Gentleman in substantive questions and it is not long before we will have the delight—I hope—of hearing from him again in topical questions. Members cannot, I am afraid, have two goes at substantives. One can almost have too much of a good thing.