EEF calls for New Deal for manufacturers

MANUFACTURERS today called for the next government to make their sector a priority as businesses continue to struggle despite the end of recession.

Launching its Manufacturing Manifesto, manufacturers’ organisation EEF said the new government – whatever its colour – needed to act differently and put in place a new strategy to ensure the UK paid its way.

The organisation said it believed the new government faced difficult choices about rebuilding and rebalancing the economy.  It said it therefore needed a clear and credible strategy for growth, as the decisions it takes in the first 100 days would have lasting implications for the UK’s prosperity.

EEF said the manifesto – a key part of Manufacturing Week – provided a bold, proactive strategy to grow markets and stimulate investment in innovation and skills, offered an approach to repairing public finances and minimised the pain of decarbonising the economy.

Martin Wassell, Midlands’s region director for EEF, said:
“We need to look again at what sort of economy we want in the future and how we get there.

“The current economic and political debate is stale, glossing over complex yet pressing practicalities of how to rebuild and rebalance our economy, how to repair the public finances and how to create jobs and boost investment.”

More people were beginning to realise the scale of the challenge, the value of manufacturing and the need for a strategic approach but were being let down because of a lack of clear thinking, he added.

“By putting manufacturing at the heart of healthy economy, our manifesto is a clear, practical strategy for building a more prosperous Britain,” he said.

EEF said the new government needed to use its influence wisely.

It said businesses needed to see greater consistency and a more efficient government which reduced the cost of public administration by addressing public sector pay and pensions and working better with the private sector.

It would also have to send the right signals to investors; overcome obstacles to growth; become a better customer; and prioritise investment.

“Manufacturers are successful despite operating in a business environment that actively discourages their investment and growth,” said Mr Wassell.

“Subtle, yet inherent biases against manufacturing in the tax, regulatory, skills and finance systems must change if we’re going to rebalance our economy.”

Priorities for the new strategy should be to maintain a default retirement age and retaining the individual opt-out from the Working Time Directive.

It should also reform Capital Allowances to reflect the true cost of modern machinery and ensure productive sectors of the economy do not bear the brunt of fiscal consolidation.   

Resources for STEM subjects should be prioritised and the complex skills landscape must be simplified to deliver a demand-led approach, it added.

The government must also keep planning independent and take a balanced approach to energy supply and storage, invest in innovation and deliver valuable business support schemes.
 
However, Mr Wassell said getting the business environment right was only part of the job.

“Manufacturers need confidence to continue to make long-term investments in the UK; in new capacity, in modern machinery, in their workforce and in innovation.

“The real challenge is using government’s influence to send the right signals to would-be investors who are making decisions so as to encourage investment here in the UK,” he said.

To this end, it would have to give businesses the confidence to invest and set out coordinating strategies for growing new key markets such as low carbon vehicles, aerospace, healthcare technologies, and construction and building products.