Wednesday, July 8, 2020

Industry warns of slow-lane if Spending Review cuts support for innovation and exports

Britain risks entering the industrial slow-lane if support for innovation and hi-tech research is slashed in the forthcoming Spending Review, manufacturers have warned.

Publishing its submission, the manufacturers’ organisation EEF has warned that an increasingly fragile outlook for the sector means the important job of balancing the books must not be allowed to derail industry’s long-term prospects by creating uncertainty or add to the cost burden for globally-exposed manufacturers.

In particular, EEF is cautioning against any reduction in the support government provides to back some of the nation’s most advanced industries. To do so would send out the wrong message to companies who are responsible for more than two thirds of the UK’s research and development activity and almost half of exports.

EEF Chief Executive Terry Scuoler says: “The Chancellor has a lot of boxes to tick in his Autumn round-up of announcements from reducing the deficit and supporting stronger productivity growth to delivering more efficient government and quality public services. Manufacturers stand behind these goals, but a much more challenging growth outlook since the summer means the Chancellor’s statement must also deliver a stable and supportive business environment for our vital industries.”

Industry is calling on government to increase backing for Innovate UK, the body which supports business research and hi-tech development and is urging the Chancellor to ensure UKTI, the export support agency, receives adequate funding support to ensure it is able to give tailored advice and guidance to companies wishing to sell goods abroad.

Mr Scuoler adds: “Government has a successful track record of working closely with businesses to support innovation. This backing is vital to research programmes which help keep British businesses at the forefront of new ideas, and critically, able to transfer those ideas into commercial successes. While we recognise the difficult fiscal environment the government faces, reducing spending on innovation would harm efforts to improve productivity, which is the key to longer term economic stability.

“Most manufacturers either export or are involved in supply chains that lead to exports. If we want to get more of our companies exporting to more countries the expert advice network established by UKTI must be maintained and where possible enhanced. This is a good example of the way government works side-by-side with industry to deliver tangible results that boost our economic strength.”

EEF’s submission to the Treasury includes warnings about the impact of the proposed apprenticeship levy on businesses, among other recommendations. EEF is calling for clarity and reliability in terms of channelling all levy funds back to businesses, ensuring anything they pay into the system they can draw down to pay for training.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Modular installation firm boost senior team as COVID turnaround continues

East Yorkshire modular installation firm, Frontier Modular Services, has strengthened its management team with the appointment of Adam Millikin as Operations Manager. Mr Millikin, who...

Wakefield logistics facility acquired in £20m deal

Hines Glob­al Income Trust has acquired a UK logistics asset at Wakefield 41 Industrial Park from AEW UK Core Property Fund for £20.635 million. Located...

Business volumes fall at record pace in financial services

Business volumes in the financial services sector declined at the quickest rate on record, according to the latest CBI/PwC Financial Services Survey. Profitability and...

Job applications rise and competition intensifies

Competition for jobs has intensified as the lockdown eased with applications rising by 32% in June, according to a new market report. The report, from...

Croda swoops for US life sciences firm

Croda International, the Goole-headquartered speciality chemicals producer, is acquiring US life sciences business, Avanti Polar Lipids. The deal brings together Avanti's expertise in lipid-based drug...

NPIF-backed business launches thermal imaging tech to detect COVID-19

Connectus, a connectivity and end user managed service provider, is launching thermal imaging technology to help businesses to detect COVID-19. The company – which has...

Related news

Modular installation firm boost senior team as COVID turnaround continues

East Yorkshire modular installation firm, Frontier Modular Services, has strengthened its management team with the appointment of Adam Millikin as Operations Manager. Mr Millikin, who...

Wakefield logistics facility acquired in £20m deal

Hines Glob­al Income Trust has acquired a UK logistics asset at Wakefield 41 Industrial Park from AEW UK Core Property Fund for £20.635 million. Located...

Business volumes fall at record pace in financial services

Business volumes in the financial services sector declined at the quickest rate on record, according to the latest CBI/PwC Financial Services Survey. Profitability and...

Job applications rise and competition intensifies

Competition for jobs has intensified as the lockdown eased with applications rising by 32% in June, according to a new market report. The report, from...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close