Partner Article

Autumn Statement: the manufacturers perspective

Here’s some of what EEF, the manufacturers organisation, had to say following the Chancellor’s Autumn Statement.

Terry Scuoler, Chief Executive of EEF, the manufacturers’ organisation, said: “The Chancellor demonstrated that he has hands firmly on the levers of growth and is pulling them to support growth which is driven by exports and investment.

“Today’s measures on the annual investment allowance, the headline rate of corporation tax, export support and infrastructure spending have laid the foundations of a strategy to ensure business chooses to invest and grow in the UK.

“However, the scale of the challenges our economy faces means we must keep our foot on the accelerator. We cannot afford to see further downgrades on growth in output and business investment, and government must therefore set out how its economic priorities are going to drive its spending plans.

“We have seen how its ambition to double our exports by 2020 has driven concrete action and this clear sense of priorities must now drive the decisions it takes in next years Budget and Spending Review.”

On measures to boost investment, EEF Chief Economist, Ms Lee Hopley, said: “Prioritising resources towards measures to boost business investment through increasing the Annual Investment Allowance was a positive pro-growth announcement from the Chancellor. This move starts to provide the foundations of a strategy that is serious about support more globally focussed companies choosing to invest and grow in the UK.

“But with the strong rebound in business investment still forecast to be a few years out, the Chancellor cannot afford to ease up on efforts to build confidence about the UK as a place to invest and grow.”

On measures to boost exports, EEF Director of Steve Radley, said: “Expanding our exports will be a key route to growing our way of out recession and industry is up for this challenge. We applaud the government’s efforts to beef up its support for exporters and raise its profile but it is vital that this support is targeted at the ambitious exporters that can make a major contribution to growth.”

On proposals for a single pot for LEPs, EEF Chief Executive Terry Scuoler, said: “Government needs to think very carefully before loading up the Single Pot. While there may be a case for devolving some funding and giving LEPs some increased resources, such a shift from feast to famine risks wasting scarce public funds by pushing them through bodies that don’t have the capacity to digest and make best use of them”

“The government should rethink its plans to give LEPs a large amount of control over skills policy and budgets. Local skills budgets have been tried in the past and didn’t work and such a move will get in the way of creating a market for training where funding is driven by employers’ needs.”

On Pensions tax relief and changes to the closure of Pensions deficits, EEF Director of Policy, Steve Radley, said: “Business will welcome the Chancellors decision to look at allowing companies to taka longer view on closing pension fund deficits. This could help to address a significant drag on business investment. But the decision to scale back to tax relief on pension fund contributions is the wrong one at a time when we need to be encouraging people to save more for their retirement.”

On the Energy Intensive package, Gareth Stace, EEF Head of Climate & Environment said: “EEF welcomed the announcement of the package last year to ensure a level playing field for electro-intensive industries in European and global markets and the confirmation of the exemption from the costs for contracts for difference today is welcome.

“However we are now seriously concerned that about the level of relief. The package must deliver on its core aim which is to ensure a level playing field for electro-intensive industries and not be limited due to constraints on the fund.”

On the Carbon Reduction Commitment, EEF Head of Climate & Environment, Gareth Stace, said: “Simplifying the CRC Energy Efficiency Scheme including removing the Performance League table is a good move but ultimately this hugely inefficient and unpopular tax needs to go. We therefore welcome the Chancellor’s decision to prioritise its removal as part of the next Spending Review.”

On Infrastructure Spending and Guarantees Roger Salomone, EEF Head of Business Environment, said: “Additional funding for infrastructure is a major move in the right direction but scarce funds must be spent where they provide maximum benefit. Growing interest in the guarantee scheme is a tentative sign that the government’s efforts to jump-start private sector investment in infrastructure is slowly beginning to bear fruit.

“However, the government cannot be complacent and must keep up the pace. The UK needs to address years to chronic underinvestment in infrastructure to build a more a competitive business environment.

“We also welcome the introduction of a “one in, two out” rule for new regulation and the continued emphasis to lower the costs of doing business by cutting red tape.”

On the Dash for Gas, EEF Head of Business Environment, Roger Salomone said: “This is a decisive move towards a more balanced energy policy and further switching from coal to gas can deliver substantial emission cuts. Whilst developing the nation’s shale gas resources could enhance our energy security and help contain energy prices rises. However, the government needs to be mindful that some of its policies, like the carbon price floor, do not unintentionally destroy the economics of gas-fired generation. “

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