Professional services firm EY’s Building a Tax Manifesto report says that, by capitalising on the current trend of companies moving manufacturing activity closer to home, the UK could bring manufacturing foreign direct investment into line with other sectors.
This could generate up to €4.6bn for the country’s economy according to EY, with Yorkshire set to benefit because it is an attractive investment destination for manufacturing businesses.
With the election approaching, EY is calling on the political parties to develop a clear and targeted approach to manufacturing – including a structured tax manifesto – which it says has the potential to generate highly skilled jobs, create further opportunities in supply chains, drive innovation, and create ‘cluster effects’ around research, development, and skills.
Tim West, head of tax for EY in Yorkshire, said: “With rising overheads in what were once low-cost destinations, we are seeing the beginnings of a re-shoring revolution with many companies deciding to locate their manufacturing activities closer to the home markets. This creates a compelling opportunity for Yorkshire, where manufacturing is already the top sector for foreign direct investment.”