Director General, Martin Temple, said:
"Business will welcome the much needed action to improve efficiency in the public sector and the curb the rate of growth in public spending. However, it is essential that the Chancellor’s efficiency measures work if we are to avoid the need for higher borrowing or tax increases later on.
"Manufacturers in particular will breathe a sigh of relief not to be hit by any major tax increases which could snuff out the benefits of an improving economy."
Martin Temple added:
"There are a number of measures manufacturers will welcome, including important moves to tackle regulatory and administrative burdens. Particularly welcome is the extension to the scope for Climate Change Levy rebates for which the EEF has been leading the campaign."
Spending on Science and Education
EEF also welcomed the Chancellor’s spending commitments on defence and the transport infrastructure, both of which are key to manufacturing performance in the UK. Increased investment in science and education will also be welcome.
Martin Temple added.
"Manufacturers have been calling for greater and more effective investment in science, technology and education and the Chancellor’s strong public recognition of this will be music to their ears.
"However, companies will be disappointed not to receive concrete plans to increase resources for modern apprenticeships which are essential to tackling the skills deficit in engineering. We will be looking to the Secretary of State for Education to address this need in the forthcoming spending round."
EEF also welcomed changes to the tax reliefs for Venture Capital Trusts but expressed disappointment that more attention was not devoted to addressing the significant under investment in British manufacturing.