News

Eight plastics industry trade bodies have called on the government to extend the suspension of stamp duty and postpone the increase in small companies corporation tax to help members deal with the recession.

The Eight Association Alliance represents the plastics, rubber, coatings and associated machinery and tool making sectors and has written to Chancellor Alistair Darling suggesting a number of proposals to "deal with the recession and prepare for the economic upturn".

The Alliance called for the extension of stamp duty by 12 months and the postponement of the increase in small companies' corporation tax until April 2011.

It also urged the chancellor not to increase National Insurance contributions in April 2011, as previously planned, but welcomed the extension of the car scrappage scheme and the climate change levy rates for 2010-11.

The Alliance also requested the extension of 40% first-year Capital Allowances until April 2011.

"Due to a very uncertain marketplace and cashflow, many firms have not been able to take advantage of this," the Alliance wrote.

Training was another of the group's concerns: "We support the CBI's call to ask government to subsidise 50,000 apprenticeship places to improve our skills base, reduce youth unemployment and prepare for the upturn."

The Alliance, which includes the British Plastics Federation and the Packaging and Films Association among its members, wrote to the Chancellor ahead of next month's pre-Budget statement.

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