Commenting on today’s Pre-budget report, EEF the manufacturers’ organisation welcomed the Chancellor’s measures to boost science and simplify red-tape, especially business inspections and paper work. It also welcomed extension of the Employer Training Pilots as long as the resultant training was business focused.
However, EEF warned that the UK’s manufacturers would be watching closely to ensure that government maintained control of public expenditure and that business taxes did not rise should a Labour government be returned after the next election.
Martin Temple, EEF Director General, said:
"This statement hit many of the right notes for Industry with its focus on skills, science
and regulation. However, with the Chancellor’s revenue forecasts remaining optimistic it is essential that firm control is maintained over public expenditure to avoid business picking up the tab after the next election."
Red Tape and Regulation
On regulation Temple added:
"Measures to address the rising tide of regulation and red-tape are long overdue but must be followed through to ensure they are not just fine words but can make a real difference.
"However, the proposed changes to flexible working arrangements and maternity rights will need to be balanced by greater certainty about when those on maternity leave intend to return to work so that administrative burdens on employers are limited."
Employer Training Pilots
Commenting on the move to extend the Employer Training Pilots, Chief Economist, Steve Radley, said:
"Manufacturers will support the new National Employer Training Programme as long as it provides business-focused training schemes which will enhance productivity and competitiveness. Funding for level 3 as well as level 2 qualifications is a start but government must ensure that wage costs for time off continue to be compensated in the new scheme."
R&D tax credit
EEF welcomed the review of the operation of the R&D tax credit. EEF has been concerned that the credit has been too difficult for companies to claim and will be seeking to work with government to ensure that it meets the needs, and raises the performance, of all manufacturing sectors.