Pioneering engineering firm Transicon said today’s budget was disappointing and lacked tangible support for manufacturers in the wake of the Industrial Strategy. 

Jennifer Hughes, general manager of the Telford-based firm which works with major manufacturers such as BMW, Tata Steel and Muller Dairy, welcomed support with energy costs and access to finance but warned the measures were not enough to restore confidence and growth across the sector.

She said: “The cumulative impact of increased National Insurance contributions, uplift in National Minimum Wage and Corporation Tax is already squeezing margins for many businesses and the additional tax rises and minimum wage rises announced today will take more money out of the economy and lump further pressure on businesses.

“We’re disappointed that there was no real recognition of the burden that industry is facing and the impact this is having on the sector’s ability to invest in skills, innovation, AI, cybersecurity and technology.

“With the launch of the Industrial Strategy earlier this year, we’d been hopeful that this budget might deliver more in terms of funding for manufacturers particularly SMEs like ourselves. 

“We’d also been keen to see a reversal to the SME R&D tax relief which is crucial if we want to encourage small firms across the industry to push boundaries and invest in new solutions.

“At the current rate, we only get 15p back for every pound we invest in our people working on research and development projects. At this rate we have to think more carefully about taking on risky innovative projects and we know we’re not alone. This is stifling growth and innovation across smaller businesses which make up the backbone of the British manufacturing industry.

“We were however pleased to see mention of funding for skills and welcome new measures on apprenticeships that will support us and other SMEs to train the next generation. The skills gap across the sector remains a persistent challenge."

Transicon, which was set up in 1967 and is based at Queensway Business Park, employs 45 people.

The company has built a formidable reputation for its work manufacturing bespoke automation and control systems incorporating AC Drives, DC Drives, Servo Drives, PLC and SCADA Systems.