EEF, the manufacturers’ organisation believes that the decision is a major boost at a time when manufacturing has been hit hard by the current downturn. However, whilst welcoming the decision EEF believes it also highlights the need for government to take a fresh approach to strategic procurement in order to provide more certainty for key sectors in the long term.
Commenting on the decision, EEF Director of Policy, Steve Radley, said:
"Today’s decision will provide some much needed certainty over orders for the UK’s defence sector and will help safeguard skilled jobs throughout the supply chain.
"However it also underlines the need for a new approach which gives industry clear signals on where the government's long-term priorities lie. Industry will be watching closely to see whether things are genuinely moving in this direction or whether talk of a more activist approach proves to be another false dawn."