So much for restarting the UK manufacturing industry!
It looks as though I may actually be able to get my hands on a Rasperry Pi device in the very near future. The team announced today that they’ve started manufacture of the device. initially, as a UK charity, they wanted to make the device in the UK and support local business but like many other people I’ve spoken to sadly the cost of local production is just too high when compared to what’s on offer in the far east (I recall reading an article by Simon Mottram of Rapha saying the same thing and complaining about quality too).
However it was this paragraph that left me stunned:
“I’d like to draw attention to one cost in particular that really created problems for us in Britain. Simply put, if we build the Raspberry Pi in Britain, we have to pay a lot more tax. If a British company imports components, it has to pay tax on those (and most components are not made in the UK). If, however, a completed device is made abroad and imported into the UK – with all of those components soldered onto it – it does not attract any import duty at all. This means that it’s really, really tax inefficient for an electronics company to do its manufacturing in Britain, and it’s one of the reasons that so much of our manufacturing goes overseas. Right now, the way things stand means that a company doing its manufacturing abroad, depriving the UK economy, gets a tax break. It’s an absolutely mad way for the Inland Revenue to be running things, and it’s an issue we’ve taken up with the Department for Business, Innovation and Skills.”
I think this just about sums up a lot of the problems that technologists have in the UK at the moment and the disconnect between Government policy and the real world. For all the focus on the Tech Hubs and the upcoming digital revolution there are still huge barriers to entry for UK companies to be competitive on the global marketplace. Having just filed my Tax return I probably shouldn’t be too critical of HMRC but it seems to me that the Government and the Revenue service have some aligning to do. For the UK technology sector to flourish it can’t all happen through browser based web services – we need more Raspberry Pis in this country.

