Question

To ask the Secretary of State for Business, Innovation and Skills, what steps his Department is taking to encourage the manufacturing industry in Scotland.

Targeted initiatives to encourage manufacturing in Scotland are a devolved matter for the Scottish Government. However we are taking steps to strengthen manufacturing capability across the UK. These include support for innovation and technology commercialisation through the High Value Manufacturing Catapult, help for businesses seeking to tap into opportunities in foreign markets, and in January 2014, Reshore UK was set up to assist UK manufacturers looking to win back production and jobs from overseas.

We are taking action to increase manufacturing investment. In the 2014 Budget, my Rt Hon Friend the Chancellor of the Exchequer doubled the annual investment allowance to £500,000 until the end of 2015. 100% first year capital allowances in enterprise zones will also be extended for three years to 31 March 2020.

We are also helping energy intensive industries by compensating them for indirect costs of the carbon price floor and EU ETS extending beyond 2015-16. EIIs will also be compensated for the Renewable Obligation and Feed In Tariffs from 2016-17.