Prisk's work experience boss wants tax move
The chief executive of Telford-based brick specialist Blockleys has urged business minister Mark Prisk to work towards a “transparent and stable” European tax regime that does not disadvantage British manufacturers. Speaking exclusively to Insider, Martin Warner said potential changes in the EU tax system could detrimentally affect British producers.
Warner owns Blockleys’ holding company - Michelmersh Brick Holdings - where he was joined by Prisk for a day’s ‘work experience’.
The visit was made as part of Prisk’s 'Week in Small Business' schedule.
Warner told Insider: “There are very complicated rules governing energy-intensive users like brick makers and we need to ensure there is a level playing field across Europe. If the UK is taxed differently on its carbon use, we will see ‘carbon leakage’, with bricks being made elsewhere and then imported. Already, a lot of the bricks we use in this country are made overseas.”
Michelmersh itself had no plans to move overseas, he confirmed, adding: “We are very much UK-based, a sustainable industry employing people in rural communities.”
However, he said that the issue of tax could impact on future investment decisions.
“I told Mr Prisk that I’d like the government to work with Europe to provide a regime that doesn’t disadvantage British producers. That is a situation that could happen as rules change,” he said.
The minister’s visit, said Warner, gave him the chance to “get these points across”. “It was a good opportunity to talk to him about the issues affecting businesses on the front line. I think he already knew about them but I’d like to think our input has helped nudge things along a little. It all helps to firm up the message.”
Warner said he was impressed with Prisk’s understanding of the issues facing businesses. “He spent a lot of time with us and I felt he understood the problems of running a medium-sized business. It was refreshing to see a government minister showing such interest and understanding of the benefit of encouraging British manufacturing.”
With five sites and more than 300 employees, the group is the largest UK producer of handmade bricks, as well as making machine-made bricks.
Warner said the British brick industry had been through “tough times” during the past few years but that things had now stabilised and he could see potential in expanding the business in the longer term.
The group operates from five sites in Shropshire, Leicestershire, Hampshire, Sussex and Buckinghamshire.
