Chancellor Osborne reveals budget to help local manufacturers

Manufacturers of the UK were among the beneficiaries of the Budget 2014 revealed

on Wednesday by Chancellor George Osborne, which aims to secure the country's economic recovery.

"This is a Budget for building a resilient economy," said the chancellor, adding that manufacturing in the country is growing after being halved under the last government. The chancellor announced plans to improve exports, encourage smaller business investment as well as local development and skills for Britain's manufacturers, in a budget that is for "makers" and "doers", as well as savers and pensioners.

Part of the government scheme for structural reform is developing a healthy environment for the country's businesses to grow, invest and export. Corporation tax is set to drop to 21 percent in April this year before hitting 20 percent in April 2015, the lowest rate in the G20. In April, there will also be the introduction of the 2,000 pound Employment Allowance, which aims to support growing businesses and help create jobs.

Reduced business energy costs will also be introduced to ensure that the UK remains a competitive location for manufacturing. "We are going to have a seven billion pound package to cut energy bills for British manufacturers," said Osborne on Wednesday.

The Budget also aims to support businesses across the country to invest and expand by doubling the annual investment allowance to 500,000 pounds, which is extended to 2015. This means that 99.8 percent of local businesses will not pay tax on investment. The government's export finance plan, which helps UK business take advantage of global opportunities was doubled to 3 billion pounds, and interest rates were lowered.

Tony Attard, chief executive of Panaz, a textile maker in Burnley, told the Financial Times that he had never used export finance because of its price. However, news that the interest rate would be cut by a third may encourage the 16 million pound turnover business, which exports to China among other places, to use government funding. "I was really encouraged by the budget," he added. "The increase in capital allowance has huge implications."

The chancellor also extended the 1,000 business rate discount for hight street stores for an additional three years and canceled Compulsory national insurance contributions for employees under 25. Further funding for apprenticeships were also introduced, an extra 85 million pounds in 2014-2015 and 2015-2016 will been provided in over 100,000 grants to employers.