Last March, unprecedented times called for unprecedented measures, with the government announcing financial support packages to help both businesses and individuals as the Covid-19 pandemic hit. Fast-forward to March 2021, and the budget highlighted that we are still in the emergency phase of the pandemic, with a focus on securing an economic recovery and ensuring business stability.
JJ Smith, the UK’s leading supplier of woodworking and offsite construction machinery, were particularly thrilled with the budget’s focus on new machinery investment. Beginning April 2021, the Government is investing £25bn in the UK's future growth & prosperity. Through the 130% super-deduction, companies can cut their taxes by up to 25p for every pound they invest in new machinery. If a company were to invest £50,000 in new machinery, they would reduce their taxable income by £65,000. This provides a fantastic opportunity for UK businesses to invest in new machinery that will enable them to be more productive, innovative or efficient while simultaneously reducing their corporation tax liabilities.
Managing Director Martin Smith said “JJ Smith welcomes the focus in the budget on investment in the construction industry as a key driver for jobs and prosperity in the UK. In particular as a leading supplier through its subsidiary company Modular Building Automation of automated equipment solutions for the offsite sector. Being the only offsite construction machinery supplier in the UK, MBA company is well placed to assist businesses large and small looking to innovate in this sector.”
Furthermore, JJ Smith are a family business based in Knowsley who strongly believe in the benefit of apprenticeships and are proud to provide employment and training opportunities to local people. Pictured above is rising star Ben Pybus who has just completed his apprenticeship and is now a fully qualified engineer. “Ben has shown a fantastic aptitude for engineering over the course of his apprenticeship and we’re very proud of all that he has achieved. He is a real asset to the company and he has a bright future ahead of him” said Dave Moore, Operations Manager. The announcement of the plan for additional £126 million for 40,000 more traineeships in England is good news for young people. This will fund high quality work placements and training for 16-24 year olds in 2021/22 academic year. As well as this there is an extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000. JJ Smith currently employ five apprentices and endeavour to hire two new apprentices every year, so welcome the incentives for companies like theirs to continue to offer opportunities to young people to start their careers.
Commercial Director, Rachael Baker said: "There are a number of announcements in the budget that we welcome. The Modern Methods of Construction Taskforce is good news. We are proud to supply machinery to the offsite construction industry and welcome the increased focus on this construction method. The super-deductions on capital investments in machinery assets provides a fantastic opportunity for UK businesses to invest in new woodworking machinery that will enable them to be more productive. We welcome the Liverpool City Region Freeport status and the possibilities that easier trading could bring to us as a company, and the increased apprenticeship funding is excellent too.”