Rachel Reeves has been warned she cannot “tax our way to growth” in a damning assessment by JCB’s boss on the 80th anniversary of the company’s creation.
Graeme MacDonald told GB News that a new £100million investment will secure the jobs of 8,000 UK employees but that he remains concerned about the Treasury increasing taxes.
The investment looks set to start immediately, with plans to install a fully automated powder paint plant, new machining centres, friction welders and cylinder boring machines.
JCB is one of Britain’s biggest success stories, with their yellow machinery an iconic sight of British innovation.
Mr MacDonald told GB News: “It’s a big investment, it’s about modernisation, it’s about efficiency and it’s about protecting jobs in the future; so very exciting.
“The budget last year was particularly anti-business. One thing we can’t do is tax our way to growth.
Graeme Macdonald spoke to GB News about JCB’s fears on its 80th anniversary
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GB NEWS
“Making this country more competitive is about having attracting inward investment, exactly the type of project we’re announcing today.
“We love an environment to be competitive in terms of low taxes, low energy costs, however, unfortunately, this government didn’t do that in the last budget and all the rhetoric we’re hearing so far is about tax raises.
“I don’t think that’s going to be particularly helpful.”
Ms Reeves is widely expected to raise taxes in her budget next month, to keep to her fiscal rules.
The Chancellor has indicated she is likely to focus on those wealthier individuals.
Son of founder Joseph Cyril Bamford, Lord Anthony Bamford, was born on the day the company was founded back in 1945.
He says not enough is being done to support businesses of all sizes.
He told GB News: “There are 5.5 million small businesses in Britain, and I don’t think they’re looked after by any party.
“There are only 2000 public companies, and if the 5.5 million small businesses employ three people each, that’s 16 million people who are voters. I think they’re being ignored.”
JCB’s investment aims to ensure British manufacturing is at the forefront of innovation for years to come.
Independent analysis by Oxford Economics shows the company contributes £2.8billion to UK GDP, £739million to the Exchequer in taxes and supports 41,200 jobs in the UK economy.
Son of founder Joseph Cyril Bamford, Lord Anthony Bamford, was born on the day the company was founded back in 1945
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GB NEWS
Describing JCB’s humble beginnings, the company’s historian Julian Carder said: “Our founder, whose initials are JCB of course, started manufacturing trailers from leftover war surplus material back in 1945 here in Uttoxeter.
“The breakthrough moment came in 1953, when he entered the construction market with what we know today as the backhoe loader.
“A genius moment was putting a front-end loader onto a tractor with an excavator on the back, to become the backhoe loader.”
