Since 2010 the government began reducing corporation tax in stages, falling from 28% to 23%.
This will be cut to 21% from April 2014 and will reach 20% in 2015. The small profits rate has also been cut to 20%.
While the government announced it will provide over £600 million funding for a £12 rebate on every domestic electricity bill for the next 2 years, and fund up to £1,000 for future home buyers to spend on energy-saving measures, there was no new policy initiatives on business energy costs.
The Packaging Federation said it was supposed to be government policy to re-balance the economy by supporting a growth in manufacturing.
"So why are we still struggling under a burden of increasing energy and carbon taxation at a rate far higher than that of our international competitors," Dick Searle, chief executive, told Packaging News.
"The Chancellor needs to wake up to the fact that economies thrive on value created by business not consumer spending funded by evermore debt."
David Brimelow, managing director of polythene packaging manufacturer Duo UK, echoed these concerns, telling Packaging News: "For us and many manufacturers, ?energy bills are a major concern and one that directly effects our competitiveness in the international market. If the Government is serious about boosting manufacturing and increasing British exports, this is one area they should tackle urgently."
Benjamin Punchard, global packaging insights director at Mintel Group, told Packaging News the jump in energy bills could affect the packaging industry: "Of course this will be impacting some pack types greater than others and could be another spur for the move away from glass. This could potentially impact jars where we've seen some very interesting recent plastic pack launches into traditionally glass categories, for example the Marks and Spencer PET jar for pickles provided by RPC."
Stergios Bititsios, FMCG business development leader at Cambridge Design, welcomed an increase in investment allowance and the subsidy of employing young people.
"Both steps could potentially contribute towards future-proofing the packaging industry in the UK whilst at the same time helping businesses find a financial balance between up-front investment and direct costs," he told Packaging News.
"However, if the UK packaging industry wishes to evolve into a global super power and remain competitive through time it will require more substantial help from the government.? As countries like China rapidly grow to take over major manufacturing sectors, benefiting from low industrial wages, low production costs and, let's be honest, low environmental concerns, European markets and industries will gradually suffer more.?I echo the concerns of those firms pointing at the energy prices issue. Cutting energy prices could be a significant aid to businesses whilst retaining high standards of living and productivity."
Chris Dow, chief executive of Closed Loop Recycling, was also concerned about the lack of focus on the green economy.
"Green industry should be seen as an opportunity for job growth and industry reform rather than being treated as an economic cost. We are urging the government not to park the green economy for the next generation, but to ensure green businesses such as ours receive the right signals for investment and growth opportunities."
