In its submission, published today, EEF welcomes the decision to reduce public spending in the economy which it believes is vital to providing the basis for restoring the competitiveness of the UK’s tax system. The emphasis on improving the efficiency and effectiveness of public spending is also critical, as well as close scrutiny to ensure that real and lasting gains are being achieved.
Commenting, EEF Director General, Martin Temple, said:
“The government’s first priority should be a lower business tax burden and the Chancellor must signal to business that he will address this. In addition, the goldilocks years of public spending could not carry on and business will welcome a more realistic approach which combines a reduced level of public spending with a renewed drive to spend this reduced level more effectively
EEF believes government should continue to pursue policies which would boost economic performance in three key areas:
1. Education & Skills:
Key priorities in this area include investing in the equipment and facilities for science teaching and to deliver Specialised Diplomas; increasing the quality of careers advice and the effectiveness of activities to promote STEM (science, technology, engineering and mathematics) subjects as announced in last week’s Sainsbury Review.
Government should also support employer investment in skills. In particular, this includes backing the urgent implementation of the recommendations of the Leitch Review and a reform of vocational training, as well as funding high quality apprenticeships for adults.
2. Innovation
Government should back the recommendations of the Sainsbury Review, in particular support for Knowledge Transfer Partnerships amongst small and medium size companies and proof of concept funding.
3. Exports
Government must back UK Trade & Investment with the funding required to deliver a high quality service (funding for trade support has fallen by a third between 2003/4 and 2007/8).