EEF's weekly briefing on the issues affecting manufacturers including a look ahead to the pre-budget report response and EEF business trends, as well as our regular round up of how we are representing manufacturers and the latest economic indicators.
Working capital concerns raised with Minister
This week EEF took part in the regular meeting of the Small Business Finance Forum, chaired by Lord Davies, a Minister at the Department for Business. We reported EEF survey data which shows that while access to credit seems to be improving a little, there are still concerns over the availability of working capital when an upturn arrives. We also received assurances that HM Revenue and Customs will not tighten up its ‘Time to Pay’ scheme in a way that will put businesses under pressure to pay deferred taxes at a time when their cash flow is under increased pressure. The group also discussed the challenges in establishing a Bank for Industry following the publication of the Rowlands Review.
For further information contact Steve Radley, Director of Policy
Latest from government’s Ministerial Advisory Group
We have also attended the latest Ministerial Advisory Group on Manufacturing with Ian Lucas, Minister for Business and Regulatory Reform. EEF led a discussion on a project to look at prioritising support for manufacturing over the upturn and in the medium-term. We also discussed research by the Department for Business on strengthening supply chains, and new government strategies to support the development of both the Composites and Plastic Electronics industries.
For further information contact Steve Radley, Director of Policy
EEF members hear Tory priorities for Better Regulation
John Penrose MP, Shadow Minister for Business, Enterprise & Regulatory Reform met with members of EEF's North West Regional Council this week. He covered a range of topics but most of the discussion concentrated on how a Conservative administration would reduce the burden of regulation on business. Tory proposals include regulatory budgets to cost and set a ceiling on new regulation, a Minister in Europe to address the flow of regulation from the EU, a ‘one in, one out’ approach to new regulation and the use of ‘sunset clauses’ to put a time limit on regulations.
For further information contact Jennifer Huckstep, External Affairs Adviser
Manufacturers take issues of concern to Brussels
EEF members travelled to Brussels this week to discuss key issues for their business with decision-makers in the EU institutions. Our Brussels Delegation met officials from the European Commission and the UK’s Permanent Representation to the EU (UKREP) to hear and discuss the latest on everything from employment law to climate change policy. The group also questioned UK MEPs including Timothy Kirkhope, the leader of the Conservative MEPs, Graham Watson (Liberal Democrat, South West) and Derek Vaughan (Labour, Wales)
For further information contact Steve Coventry, Senior External Affairs Adviser
EEF outlines priorities for accessing Asian markets
On Friday, EEF was a guest of UKTI’s Asia Task Force at a meeting with Lord Mandelson and a small number of businesses. The group discussed how to increase the UK’s export performance in China, India and other Asian markets. EEF emphasised the importance of concentrating support on those companies with a genuine interest in these markets. Other priorities include reducing trade barriers, addressing companies' perceptions about the difficulties of operating in these markets, getting larger and small companies to collaborate more effectively and the need for more high profile trade delegations to match the efforts of our competitors.
For further information contact Steve Radley, Director of Policy
Lobbying continues on Working Time
We have continued our campaign on the Working Time Directive at a roundtable discussion in Brussels hosted by CEEMET, the European organisation to which EEF belongs. This was attended by Robert Verrue, Director General of the European Commission’s Employment Directorate and a number of MEPs. The Commission will publish a new consultation on Working Time in 2010. We stressed that this should recognise the significant changes that have taken place in European labour markets, rather than again trying to resolve intractable differences between Member States and the European Parliament over the future of the individual opt out and the status of time spent ‘on-call’
For further information, contact David Yeandle, Head of Employment Policy
Looking ahead: EEF business trends and Pre-Budget Report response
EEF’s quarterly Business Trends survey will be published next week and available on our website from Monday. This week we have done our usual round of briefings on the results in advance, including with Spencer Dale, Chief Economist at the Bank of England, and officials from the Department for Business. We will include further details from Trends in next week’s briefing. On Wednesday, we will also send an update to members on that day’s highly anticipated Pre-Budget Report.
For further information contact Lee Hopley, Chief Economist
In the news
Economics news has dominated the media coverage this week in the run up to the PBR and on the back of a series of EEF surveys. Our latest quarterly figures on access to bank lending were reported at national and regional level including the FT, Guardian and Telegraph, as well as being discussed on BBC 2's Working Lunch programme. Our good run in the ‘Pink ‘Un’ continued with coverage of our views on RDAs and proposals for the taxation of intellectual property. Meanwhile our concerns over pensions regulation were highlighted in Professional Pensions and EEF's award winners also continue to attract coverage.
Weekly Focus
On the eve of Copenhagen
On Monday 7 December, world leaders and government representatives will convene in Copenhagen for two weeks in an attempt to thrash out a new global agreement to limit future emissions of greenhouse gases. EEF will be there to ensure that the voice of UK manufacturing is heard and brief you on the latest developments from the inside as they unfold.
EEF is the only accredited UK business representative organisation to be participating in the UN’s Business and Industry constituency group, chaired by the International Chamber of Commerce. It acts as a focal point in the exchange of views between business and industry, the UN and negotiating teams. This will give us a unique access and perspective to the talks.
In the run up to the talks, we have worked hard to ensure that government’s negotiating team recognise that any deal must establish long-term certainty and place industry on a level playing field - where regardless of what measures are adopted, the cost of carbon is the same for all installations across the world. We have warned government that failure to consider this will see trade flows adjust to avoid heavily regulated regimes in favour of those who regulate greenhouse gas emissions with a light touch or not at all – ultimately undermining the scientific aim of the talks. Our aim in Copenhagen, as set out in this position paper, is to ensure that this message isn’t lost in the scramble for a political deal.
But we also want to ensure that you are kept abreast of what is happening. You can read about the debates, the atmosphere and the key developments on the EEF blog. You may also be interested in reading Stephen Radley’s article on the talks in a recent issue of The Manufacturer.
Latest economic data and statistics
|
Lending to individuals |
Lending to companies and individuals remains weak. Consumer credit posted a record fall in October, but the number of mortgage approvals for new house purchase edged higher to 57,000 – although this is significant below the long term average. |
|
Manufacturing PMI |
The PMI for manufacturing came in at 51.8 in November. It continued to point to an expansion in activity, but the headline index was down on October. The output and orders component were both weaker than last month, but some volatility in monthly indicators is to be expected at this point in the cycle. |
|
Services PMI |
The PMI came in at 56.6 in November. The picture was similar across services – ongoing expansion in activity, but a touch weaker than October. The survey pointed to a bit more optimism on new business. |
The week ahead
Monday 7th : EEF Business Trends Survey
Tuesday, 8th : Index of Production
Wednesday 9th : UK Trade, Pre-Budget statement
Thursday 10th : MPC decision
Friday 11th : Producer Price Index
We recommend that you take our advice before using any of the information or documents on this website. You should always seek specific legal advice before taking or refraining from any action. Information and documents on this website are prepared in accordance with the laws of England, Wales and Scotland. Users accessing from Northern Ireland should be aware that different laws and interpretations may be applicable to Northern Ireland.