Weekly Policy Briefing - 8 February

Our President, Alan Wood CBE, hosted our biennial manufacturers’ dinner in the presence of the Guest of Honour, the Rt Hon Alistair Darling MP, Chancellor of the Exchequer. Addressing the audience of invited guests, EEF Associations and member companies, our President spoke of the healthy and optimistic position of manufacturing despite the current tougher conditions.

He also spoke of the importance of tackling three key issues, skills, tax and climate change. On tax he re-iterated our criticism of the changes to Capital Gains Tax and our disappointment at the lack of any significant concessions in the recent announcements.

He also stressed the need to deal with the UK’s rising tax burden and called for the Chancellor to address this in the forthcoming Budget statement by making clear the government’s long term intention to have the most competitive tax environment amongst advanced economies. On climate change he urged a balance in policy between reducing emissions whilst maintaining competitiveness.
For further information, contact Media & Campaigns Manager, Mark Swift,

We met the Secretary of State for Business, Enterprise & Regulatory Reform (BERR), Rt Hon John Hutton MP, to discuss a number of current issues. In particular, we wanted to brief him on the department’s review of the Manufacturing Strategy and the need for it to be an outward looking review of business concerns, as opposed to just examining current policies.

We also stressed the need for it to link to the Enterprise White Paper in terms of the links with skills, innovation and ‘green manufacturing’. Separately, we covered the current Employment Bill, the results of our recent survey on flexible working and the need for government to continue its firm stance on Working Time and Agency Workers at European level.

Separately, we met the new Minister for Competitiveness, Shriti Vadera, whose brief includes manufacturing, for an informal introductory meeting on similar topics.
For further information, contact Campaigns Adviser, Steve Coventry, sc

We briefed Andy Westwood, the Special Adviser to the Secretary of State for Innovation, Universities & Skills, on a number of pressing education and skills issues. In particular, we expressed our concern at progress on the Leitch implementation plan and how this is slowing a route to a remand led system.

We also covered our proposals for reforming sector Skills Councils (SSCs) by reducing their number and addressing the duplication of effort associated with all the SSCs. Other topics covered included how to encourage more young people into apprenticeships, higher education and science and innovation where we expect a White Paper shortly.
For further information, contact Campaigns Adviser Nick Bowes

We welcomed this week’s cut in interest rates, amidst growing evidence of a more significant slowdown than expected this year. In particular, we believe the growing chance of a recession in the United States, the knock on effects of the credit crunch on business and consumer confidence and a possible slump in the housing market outweighed the potential risks to the inflation target. However, given the outlook for inflation we support the Bank’s gradual and measured approach to reductions in rates.
For further information, contact Chief Economist, Steve Radley,