THE BCMPA has described the autumn budget as a missed opportunity to support manufacturing SMEs.
The association warned that measures announced by chancellor John Healey failed to address the combined impact of employment costs, high energy prices, and increased regulatory requirements on small and medium-sized contract manufacturers, packers, logistics and fulfilment businesses.
Emma Verkaik, CEO of the BCMPA, said, “The government talks about delivering growth in every postcode, but this budget overlooks many of the businesses already making that happen. This is by no means an easy option as business owners care deeply about the people they employ and the communities they support. Yet they are being pushed into increasingly difficult decisions, with pressures mounting and little hope of meaningful relief on the horizon.
“Manufacturing SMEs create local jobs, support UK supply chains and provide stability in communities throughout the country. They need the confidence to recruit, invest in new technology and compete internationally, yet many continue to face intense pressure from rising costs and regulation.”
The BCMPA added that the announced increase in the National Living Wage will add to payroll pressures already facing labour-intensive manufacturing, packing and fulfilment businesses. Hiring young people is an investment in the future of a business, but new recruits need training, support and time to develop into their roles. The BCMPA claimed that rising employment costs make that investment harder, creating a barrier to recruitment rather than enabling opportunity.
Emma Verkaik continued, “This was an opportunity to give businesses breathing space. Instead, another rise in employment costs will make decisions about recruitment and investment even harder. When an SME decides it cannot employ another person, expand its facilities or invest in new machinery, the impact is felt throughout the local economy. It means fewer opportunities, lower investment and weaker growth.”
The BCMPA is calling for future policy decisions to take proper account of their cumulative impact on SMEs, alongside practical action to reduce energy costs and unnecessary administrative burdens across the wider business community.
Emma Verkaik concluded, “The UK has a highly capable network of contract manufacturers, packers and fulfilment specialists supporting brands, retailers and entrepreneurs all helping to deliver the products that consumers demand. If the Government is serious about delivering growth in every postcode, it must back the businesses already creating it, not penalise them.”
