Britain risks industrial slow-lane if Spending Review cuts support for innovation and exports – EEF

THE manufacturers’ organisation EEF is warning that Britain risks entering the industrial slow-lane if support for innovation and hi-tech research is slashed in this month’s Spending Review.
 
Publishing its submission, EEF points to an increasingly fragile outlook for the sector. It says this means that the important job of balancing the books must not be allowed to derail industry’s long-term prospects by creating uncertainty or adding to the cost burden for globally-exposed manufacturers.
 
In particular, EEF is cautioning against any reduction in the support Government provides to back some of the UK’s most advanced industries. To do so would send out the wrong message to companies that are responsible for more than two thirds of the UK’s research and development activity and almost half of exports, it argues.
 
EEF is also calling on Government to increase backing for Innovate UK, the body which supports business research and hi-tech development and is urging the Chancellor to ensure UKTI, the export support agency, receives adequate funding support to ensure it is able to give tailored advice and guidance to companies wishing to sell goods abroad.
 
Richard Halstead, Midlands and East region director, said: “The Chancellor has a lot of boxes to tick in his autumn round-up of announcements, from reducing the deficit and supporting stronger productivity growth to delivering more efficient Government and quality public services.

“Manufacturers stand behind these goals, but a much more challenging growth outlook since the summer means the Chancellor’s statement must also deliver a stable and supportive business environment for our vital industries.  
 
“Government has a successful track record of working closely with businesses to support innovation. This backing is vital to research programmes, which help keep British businesses at the forefront of new ideas and, critically, able to transfer those ideas into commercial successes.

“While we recognise the difficult fiscal environment the Government faces, reducing spending on innovation would harm efforts to improve productivity, which is the key to longer term economic stability.
 
“Most manufacturers either export or are involved in supply chains that lead to exports. If we want to get more of our companies exporting to more countries the expert advice network established by UKTI must be maintained and, where possible, enhanced.

“This is a good example of the way Government works side-by-side with industry to deliver tangible results that boost our economic strength.”