Autumn Statement – the manufacturers’ response

MANUFACTURING body EEF has largely welcomed measures announced by Chancellor George Osborne in his Autumn Statement.
 
Richard Halstead, an EEF regional director, said: “The Chancellor’s enthusiasm for an industrial strategy for Britain is hugely welcome, as is his promise to continue to support Catapult centres, the successful incubators of new business ideas and product development.

“By moving to protect science and research spending, he will give industry confidence and encourage many innovative companies to push ahead with the next generation of business ideas. 
 
“Moving to an exemption of energy intensive sectors from the costs of renewables is enormously welcome and demonstrates that government is dedicated to finding a long term solution to this problem.
 
“The apprenticeship levy is a blunt instrument, and the Government must work hard to ensure employers are not disadvantaged and that many smaller and medium sized businesses are exempted. What really matters is creating high quality, well trained apprentices who can look forward to successful careers in industry.

“This cannot be a simple numbers game where businesses are clobbered to pay for apprenticeships. The Government’s approach to this requires a lot more sophistication than we’ve seen so far.”

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On innovation and Catapult funding, EEF chief economist Lee Hopley said: “Keeping the funding for Catapult centres on a stable footing is great news for innovative businesses across the UK. Maintaining the balance of funding between Government and the private sector will help ensure the UK continues to encourage the kind of collaboration that will help innovators traverse the ‘valley of death’.

“The priority now is to keep the existing centres at the cutting edge of technology and expand the network as and when additional resources become available.”
 
On the switch from some grants to loans for R&D, Hopley said: “Government can grease the wheels of successful innovation with money and by encouraging collaboration across business and the science base.

“The switch away from some grants may well prove to be a canny move to maintain the number of companies that can be aided with government support and by providing an escalator of funding options.

“But this needs to go hand in hand with access to the expertise and partnering opportunities that were part and parcel of previous schemes.”