The government needs to detail plans to support the UK's manufacturing insurance holders in the pre-Budget report, it has been suggested.
EEF, the manufacturers' organisation, said that the government has to maintain its commitment to helping the country's business insurance holders by ensuring they are not burdened by higher taxes.
Manufacturing insurance holders should be further supported by an extension of the 40 per cent capital allowances rate for another year and the small companies' rate of corporation tax should be frozen, the group recommended.
Steve Radley, the EEF's policy director, said: "Failure to do this risks pulling the rug out from under companies just as growth looks set to return."
The organisation also called on the government to outline in the pre-Budget report how the UK's public finances will be restored.
A recent study by the Confederation of British Industry found that manufacturing insurance holders are still affected by depressed levels of demand, although there are signs that conditions are improving.
