Incoming government urged to embed growth plans

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Britain’s manufacturers have set the next government four key priorities to build on and secure the economic recovery, or risk failing to build the better balanced economy the UK urgently needs.

The priorities, contained in a business manifesto ‘Securing a Manufacturing Renaissance’ launched today by EEF, the manufacturers’ organisation at its national conference, outline how government must work consistently across departments, across all localities and with the UK’s international partners to drive forward a programme for growth.

In order to achieve this, the UK government needs to punch its weight at the heart of a reformed and economically successful European Union.

Commenting, EEF Chief Executive, Terry Scuoler, said:

“While the last five years have been about recovery, the next five must be about delivering a better balanced economy. Some important groundwork has been laid and it is vital the next government builds on what has worked to date.

“Achieving a true rebalancing of the economy, however, was never going to be easy. It will involve tough choices and will not happen over the lifetime of a single Parliament. It is vital therefore the next government recognises this and sets lofty ambitions to provide the long term certainty that is necessary for manufacturing businesses to invest recruit and grow in the UK.”

According to EEF, there remains much to do to restore the public finances, improve productivity and secure real wage growth. In particular, the next government should set an ambition for measurable improvements in productivity relative to our international competitors, a step change in investment behaviour in the private sector and a marked improvement in the UK’s trade performance.

EEF believes this can only be achieved by setting stretching goals and performance measures to ensure spending decisions are delivering the best outcomes for business and the wider public.

In response, EEF has set the next government the following four ambitions with specific policy principles underlining each:

     1. A more productive and flexible labour force

  • An increase in the take up of maths & science at key stages 4 and 5

  • Reform of university funding to increase applications for STEM degrees

  • Employers given control of Apprenticeship funding

  • Industry given control of developing and retaining vocational qualifications

  • A new ‘High Skill STEM’ visa should be introduced

  • Employment legislation reforms should be subject to rigorous cost benefit analysis

  • The ‘Fit for Work’ service should improve tax reliefs for private medical treatments which help employees return to work

 

     2. Improving infrastructure

  • The establishment of a permanent, independent UK Infrastructure Authority

  • Make investment in the strategic road network and broadband key priorities

  • Alternative funding plans must be found for local and strategic road networks to ensure they are on a sustainable footing beyond 2020

  • The UK’s energy infrastructure should be renewed to maximise opportunities for UK supply chains

  • The EU Emissions Trading Scheme must be reformed to prevent carbon leakage

  • UK domestic decarbonisation policy must be reformed to deliver the required energy efficiency improvements

     3. Reducing the cost of doing business

  • The carbon price floor should be removed as soon as fiscally possible

  • The compensation scheme for renewable electricity should be introduced as soon as possible

  • New targets should be set for de-regulation, including for regulations originating in the EU

  • The recommendations of the Competition and Market Authority review of SME banking should be implemented

  • A long-term commitment to fund the British Business Bank

  • The establishment of an Office for Resource Management

     4. Better support for growing business

  • Funding for both Innovate UK and Science should be protected

  • Funding for the HVM Catapult Centres must be maintained

  • Support for exporters must be maintained through UKTI funding

  • Introduce incentives to capture value from waste

  • Establish a centre for remanufacturing innovation and introduce incentives to encourage resource efficiency

 


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