Member Article

Manufactures call for focus on growth

Manufacturing businesses have called for a heightened Government focus on strategy for economic growth in the UK.

A survey carried out by EEF manufacturers’ organisation showed that nearly 80% of firms thought the Government needed to strengthen its policy on economic growth, whereas only 25% prioritised the UK’s structural deficit.

Issues within the Eurozone also need to be worked on, according to the 295 companies questioned by EEF, as up to 40% urged to Government to increase efforts to resolve the debt crisis.

Despite this call to action, manufacturers indicated they did not see the UK’s connection with Europe as a high priority, and just under 10% put importance on improving the relationship with the EU.

The chief executive of EEF, Terry Scuoler, commented on the findings, and said the Government’s “clarity and laser-like” focus on reducing the deficit should also be applied to growth.

He said: “The government has made a start with its Growth Implementation Committee but, this cannot just be about delivery. It must also ensure that all parts of government are working together effectively to deliver stronger and better balanced growth

“Manufacturers have always supported the need to reduce the deficit and get the public finances back in order. However, this was conditional on government also committing to delivering on the plan for growth.”

George Osborne pledged to cut a further £10bn from the welfare bill by the year 2016/17 in a speech on Monday morning.

Prior to the speech, Mr Scuoler stated: “The Chancellor must use his speech today to convince business that growth is the number one priority across government and that there is a plan to deliver it.”

The Chancellor pledged a further £200m to the Research Partnership Investment Fund to universities along with the £100m already assigned in 2012’s budget.

Mr Osborne reportedly said in the Treasury briefing that this money would be used to drive jobs and growth.

EEF manufacturers’ organisation outlined its recommendations to improve and strengthen future growth.

The “Route to Growth” report from the EEF said the Government should aim to increase the number of firms bringing products and services to market.

Cost reduction for UK businesses, global expansion through exports, and a more flexible labour market were also top priorities highlighted by the organisation.

The EEF said it would watch the actions taken in Government in the months leading up to the Autumn Statement.

This was posted in Bdaily's Members' News section by Miranda Dobson .