Proposals to support a strategy for growth | EEF

Proposals to support a strategy for growth

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In our previous blogs this morning, we have set out the case for the government having a clearer, stronger strategy for growth.

To be credible the strategy would necessarily need to have transparent measures, independently monitored that would demonstrate progress.

As important as this is however, a clear strategy only sets out what we want to achieve not how we are going to achieve it.

The how is where our policy recommendations come in.

Not all policy proposals that will contribute to our ambitions will neatly fit under only one ambition. Neither do we pretend our list is definitive or that we have a monopoly on good ideas. We also acknowledge some of the government's actions to date have been positive - its compensation package for energy-intensive companies and its willingness to address stiffling employment regulations as two examples.

We will of course develop further policy proposals in advance of the 2012 Autumn Statement and Budget 2013.

What is important is that the policies we are putting forward are all clearly focused on achieving the strategy for growth that we have set out and will make incremental progress towards those goals within current resource constraints.

EEF's proposals for Budget 2012, grouped under our ambitions are:

More companies bringing new products and services to market

• Introduce an above-the-line R&D tax credit that increases benefits to the largest number of firms possible

More globally-focused companies expanding in the UK

• Introduce 100% capital allowances for a two year period• Extend the Enterprise Investment Scheme to cover debt• Use the Business Finance Partnership to provide growth capital for supply chains• Ensure the National Loan Guarantee Scheme is pushed strongly through bank networks

A lower cost of doing business in the UK

• Remove Carbon Price Floor by 2015, limit its cost until then• Implement Feed-in Tariff Cost-saving Proposals• Subject Electricity Market Reforms to Robust Cost Control• Keep 2020 Renewables Target under review• Introduce Burden Reduction Target• Follow Advice of the Regulatory Policy Committee• Help employers to offset impact of State Pension Reform• Review the UK's tax treatment of capital expenditure• Tax relief for employers who fund early interventions to enable employees to return to work faster• Task the Office for Tax Simplification with reviewing the full set of green taxes• 1% Employers' NICs reduction for new employees aged 18-24• Avoiding further instability in the pensions system

A more productive, more flexible labour force

• Make STEM careers advice part of CPD for science teachers and subject curricula• Introduce minimum standards of careers advice on the entire range of employment/learning options available

In the coming days we will set out more detail for these policy areas and how they contribute to our overall strategy.


Media Team 020 7654 1576

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