Best industries to invest in in 2011

What are the best industries to invest in in 2011? If you're a business looking to expand into new areas, or an investor looking for budding companies, then having a good idea of industries that are on the up is invaluable. This year's budget, delivered by George Osbourne in March, gives some great indications of the industries and types of businesses which are set to do well this year, and in the years to come

Investing in industry

This Budget has gone quite a long way in identifying specific ways to encourage export and investment in various industries. Manufacturing, green companies, technology and science sectors were the main focus, but other industries, such as business and professional services and digital and creative also got a mention. We've identified a few measures which show promise:

Going Green

The green industry offers immense opportunity for SMEs, and we're already seeing many of our clients involved either directly or in association. To encourage further investment in the industry the 'greenest Government ever' is introducing a carbon price floor for the power sector, and also putting up to £3 billion of funds into its green investment bank to support investment low-carbon investment. This is now going to operate a year earlier than expected in 2012, should be a valuable resource for SMEs in the region looking to expand their service offering in this growing market.

Construction

Construction is big business around our region, so a £250 million commitment to help first-time buyers purchase new builds with a new shared equity scheme is incredibly welcome.

Regulations on planning are also set to relax, which should enable new projects to get up and running quickly and prevent unnecessary delays. For example, the default answer to sustainable developments is going to be yes, the nationally imposed targets on the use of previously developed land will be removed and certain use class changes will be allowed.

Stamp Duty will now be levied on the mean value of the houses being purchased within a portfolio - not the bulk cost. This will provide a significant boost to the sector by encouraging more professional landlords and larger institutional investors to grow their portfolios.

Manufacturing

The fastest growing industry in the UK, manufacturing is making a big come back and the budget is certainly supporting it. New export credits will be created to help smaller businesses, for example, and Britain's first Technology and Innovation Centre for high-value manufacturing will be launched (with a further nine to follow), which will develop the skills needed to take advantage of this industry.

To encourage manufacturers to invest in the latest machinery and technology, the limit on the capital allowances for short life assets will double from four years to eight years. Capital allowances are the tax equivalent of depreciation, allowing businesses to write off the cost of capital expenditure on items such as plant and machinery against profits. As such, they don't just apply to manufacturers - owners of commercial and even residential properties could also benefit.