Member Article

Autumn Statement: EEF calls on Gov to reassure 'nervous' businesses

EEF, the manufacturers’ organisation, has called on the Chancellor to tackle the fallout from political uncertainty and reassure nervous businesses, ahead of the Autumn Statement on November 23.

A recent EEF survey showed that 1 in 4 manufacturing companies are holding off investment plans amid increased political uncertainty.

According to the body, while the statement must reinforce a commitment to prudent financial planning, the Chancellor must signal a moderate fiscal stimulus package aimed at boosting innovation and export support for UK manufacturers.

It should also aim to remove bottlenecks holding back capital investment and push through further infrastructure commitments – from improved digital broadband connectivity to local road schemes.

However while EEF supports the Government’s decision to abandon the budget surplus target, the Chancellor faces a balancing act in avoiding an overly expansive fiscal stimulus programme while the consequences of Brexit remain uncertain.

Instead, the Government should retain its ability to deploy heavier fiscal artillery next year if evidence points to a sharp slowdown in UK economic activity.

Liz Mayes, North East Region Director of EEF, the manufacturers’ organisation, said: “The Government’s commitment to an industrial strategy has come at the right time with the new administration setting a clear and welcome precedent.

“The Chancellor has a significant opportunity to put a down payment on this through a range of measures which prioritise productivity growth, boost investment in digital technologies and supports exports.

“The whole of Government must get behind UK businesses and demonstrate a clear appreciation of the need to back such a strategy, backing sectors while also tackling systemic problems such as skills, energy costs and infrastructure weaknesses.

“Creating such an environment in the North East will instil confidence in manufacturers to pursue their business ambitions, anchoring investment in our Region, and ensuring that we take early advantage of new digital technologies.”

Get involved

To tell us your views ahead of the Autumn Statement, email no more than 250 words to Jamie at jamie.hardesty@bdaily.co.uk by close of play Thursday 17 November.