Commenting on the statement by the Chancellor of the
Exchequer, Stephen Phipson, Chief Executive of Make UK,
said:
“This was a realistic statement which lays bare the immense
challenges the Chancellor and the economy faces in the near term.
In the face of these it is absolutely right that the priority
must be to protect jobs, whilst trying to create opportunities
for young people whose futures have been left badly scarred.
Equally, it is vital to put in place the foundations now for how
we rebuild our economy.
“Industry will commend the Chancellor for addressing this
difficult balancing act with a package of measures designed to
get boots and shovels on the ground, especially the National
Infrastructure Bank and Levelling up Fund to boost growth in
those Regions which have been hardest hit.
“There remains a case, however, to also put in place consistent,
longer-term sector specific support that mirrors our
international competitors. Key strategic sectors, in particular
aerospace and automotive, employ substantial numbers of high
value, well paid jobs in areas of the country that are essential
to the levelling up and re-balancing of our economy. They are
advanced technology companies whose skills will be vital in
developing the green and digital futures which will help solve
many of the societal challenges we face. To ensure they are at
the vanguard of this new economy, it’s vital their futures are
secured with short term support now.”
Commenting on the extension of the incentive to recruit
Apprenticeships, Verity Davidge, Director of Central Policy at
Make UK, said:
“Apprentices have always been the lifeblood of many manufacturing
businesses. However, this year, on the back of reduced demand and
cutting of employee numbers, manufacturers have had to make tough
choices which has resulted in a decline in the number of
companies recruiting apprentices in the next year.
“There is an urgent to get these numbers back on track, or risk a
major skills crisis in the coming years. Increasing the incentive
scheme will help small businesses get their apprenticeship
programmes back off the ground. But there is more that can be
done. Giving employers these payments up front is a good starting
point but giving employers greater flexibility on spending their
Apprenticeship Levy would be the ultimate goal.”
Commenting on the announcements on infrastructure,
Fhaheen Khan, Senior Economist at Make UK, said:
“Infrastructure has long been the Achilles Heel of the UK economy
causing a wide range of economic impacts from poor connections to
ports and lack of broadband. The need to invest in both physical
and digital infrastructure is not just about a short term boost
to increase shovel ready projects to provide employment and
growth, it will be one of the pieces in the jigsaw of the UK’s
productivity puzzle. Using the National Infrastructure Bank and
Strategy, as well as changes to the Green Book, can also unlock
the power of UK manufacturing and productivity, as well as
crucially support the rebalancing of our regions.”
Commenting on the continuation of Kickstart, Verity
Davidge, Director of Policy at Make UK, said:
“The Kickstart Scheme is a welcome and worthy initiative targeted
at those who will be left most vulnerable as the pandemic
continues to keep a firm grip on economic growth and job
prospects. Young people have been the hardest hit and
manufacturers want to engage with these schemes. A continuation
of the scheme is a positive step forward.
“But, with many companies simply engaged in staying afloat there
are significant challenges to overcome to ensure Schemes such as
these work. Social distancing measures, financial resource and a
lack of people to support these initiatives are all barriers
companies are contending with. Government must work with industry
to address them and lead a campaign on the benefits on continuing
these invaluable schemes to ensure manufacturing avoids an
almighty skills crisis in the next few years.”
Commenting on the boost to R&D funding, Verity
Davidge, Director of Policy at Make UK, said:
“The boost to R&D funding is critically important for
manufacturers who invest a greater proportion than other sectors
of the economy. If we are to become a global leader in the
adoption of digital technologies and, put science and research at
the heart of our economy, then financial backing from Government
will be vital, especially if the UK is to lose EU funding.”
