Autumn Budget 2024: A quick guide for UK midmarket manufacturers

august budget

From tax reliefs to new environmental policies, here’s what midmarket manufacturers need to know about the Autumn Budget 2024 to make the most of these updates. 

Corporation tax relief and investment incentives

The Government has capped the corporation tax rate at 25%, giving businesses certainty about what they’ll owe. Another big addition is the permanent Full Capital Expensing Scheme, which allows companies to fully write off costs of qualifying assets—like new machinery or technology—in the same year. This can be especially useful for companies planning upgrades or expansions.

  • Manufacturers can use this relief to offset costs of new equipment or production technology, making big purchases more affordable.

Key consideration: Businesses should plan any big equipment purchases to take advantage of these tax breaks and save money in the long term. 

Fuel duty and green initiatives

Fuel duty has been increased, which impacts any business that relies heavily on transportation. To balance this, the Budget also includes incentives for businesses adopting greener practices, especially those investing in fuel-efficient or electric vehicles.

  • Manufacturers with energy-intensive processes can consider energy-efficient machinery, which is eligible for new green incentives.

Key consideration: Now is a good time to assess fuel usage and look at sustainable upgrades, as they could reduce future costs and align with environmental goals.

Changes to capital gains and inheritance tax

The Budget introduces stricter capital gains and inheritance tax rules, especially around business assets. If your business holds valuable property or equipment, these changes may affect your tax planning and how you pass on assets in the future.

  • Businesses with high-value assets, such as commercial properties or expensive machinery, may see an increase in tax obligations when selling or transferring assets.
  • Family-owned companies may face higher taxes when passing the business down through inheritance, as exemptions have been reduced.

Key consideration: If your business relies on high-value assets or succession planning, now’s the time to review these plans to minimise future tax impact.

Workforce and pension adjustments

The Government has tweaked pension tax relief, which could impact benefit plans for employees. While the exact details affect high earners the most, it’s worth noting for businesses that offer pensions as a key part of their benefits.

  • Manufacturers that rely on a skilled workforce may need to review pension offerings to stay competitive in the job market.

Key consideration: Check your pension schemes to ensure they align with the latest rules and still support employee satisfaction.

New Industrial Strategy

The Budget confirms that funds pledged for the previous Advanced Manufacturing Plan, will be put towards the newly launched industrial strategy. This includes significant R&D funding for the aerospace (£975M) and automotive (£2B) sectors over the next five years. The Made Smarter initiative will also continue to roll out as planned. 

  • Manufacturers can become more automated and productive through the adoption of digital technology. 

Key consideration: If you operate in a high growth area of industry now would be a good time to consider an investment in digitalisation to maximise opportunities. 

Investing for a strong future

With these new policies in place, it’s an ideal time to review and refine your business strategies, whether that means optimising tax efficiency, making eco-friendly upgrades, or preparing for long-term growth. 

123Insight has been transforming midmarket manufacturing businesses across the UK for decades, find out how we can help you make the most of the opportunities available.