In addition, EEF is calling for an extension of the Annual Investment Allowance as part of a wider review of capital allowances, together with measures to encourage more companies, especially SMEs, to make use of research and development tax credits.

EEF chief executive, Terry Scuoler, said: “The outlook for the economy remains positive and manufacturers want to see a continuation of what has worked well in support of industry, from industrial strategies to a stable and predictable tax regime.

“While we have a long way to go to achieve a better-balanced economy, in his final budget of this Parliament the chancellor can still do a great deal to underpin growth across manufacturing and industries which are critical to long term growth.

“Bringing forward critical compensation for energy intensive industries will send a very positive message to key industries and any further support to efforts to boost exports and investment will be equally welcome.”