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Here’s why there is next to no manufacturing in the UK

It is well known that the government is largely useless. It is also well known that, as a country, we are too reliant on overseas manufacturing. Long gone are the days where products were proudly ‘made in GB.’ We now happily import just about everything: even if the product is designed here. Why is this happening? Well there are, of course, many reasons but the largest of all has to be the ineptitude of the Government.

Let me give you an example. British charity Raspberry Pi is a Cambridge start up company that wants to encourage people into the wonderful world of software development. The want to bring back the days when computers were cheap and connected to a TV – just like in the early days of home computing. They have designed a fully-functioning bare-board machine which will retail for £22. That’s right, twenty two pounds sterling: it isn’t a misprint. As you can imagine, their project has garnered quite a lot of interest.

The news today from Raspberry Pi is that the boards have now gone into production and will be available very shortly. Surely this is good news, so why the negative heading to my post?

Well, the boards are going to be manufactured in the Far-East, rather than here in the UK. The main reason for this is because of the UK tax laws. For some inexcusable reason, UK companies that import components from which to build boards are subject to tax whereas they do not if the boards are imported in a completed state. This basically means that companies are given a tax-break for taking their manufacturing overseas. How can this be right? Am I alone in thinking that this is completely the wrong way around?

I have come to the realisation that there is something seriously wrong in the world. Our politicians are constantly harping on about austerity and how we’ve got to tighten our belts; we have more and more companies going to the wall; people losing their jobs and yet Rolls Royce announced recently that they’ve just had their best year ever. Where are they selling them? The Far East – the same place we are getting our manufacturing done!

There has been an e-petition started to urge the government to redress this stupid tax law. I urge you to please sign it.

I agree, it is madness, let me sign the petition!

 

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