Conservative response to Jeremy Corbyn’s speech at the EEF

Responding, Robert Jenrick MP, Exchequer Secretary to the Treasury, said:

“This is laughable coming from the Labour Party who oversaw millions of jobs lost and a record decline in manufacturing.

“We know from last time Labour don’t know how to handle the economy and now their plan would mean higher prices for families and lower wages for workers. The greatest risk to jobs and investment is a Labour government led by Jeremy Corbyn and John McDonnell.

“Under the Conservatives, exports are up, there’s more business investment, more manufacturing jobs and employment is at a record high - meaning more people have the security of a regular pay packet.”

ENDS

Notes to Editors

Manufacturing was decimated under the last Labour government

The last Labour government presided over the fastest ever decline in British manufacturing, with the loss of 1.7million manufacturing jobs

• ·         In June 1997, the first full month that Labour were in government, there were 4.286 million manufacturing jobs across the UK. By March 2010, the last measured month during Labour’s time in office, this had fallen to 2.574 million manufacturing jobs (ONS, Labour Market Statistics: Table 6, 13 December 2017, link).

• ·         Between 1997 and 2010, manufacturing as a share of GDP declined from 16.9 per cent of GDP to 9.9 per cent of GDP (World Bank, Manufacturing: value added GDP percentage, accessed 17 January 2018, link).

Contrary to Corbyn’s claims, exports have grown strongly over the past year and are at a record high

• ·         Our exports are continuing to grow, with exports increasing by 5.2 per cent in the 12 months to May 2018, compared to a year earlier. The value of exports over this period increased by £30.4 billion to £619.7 million - with service exports increasing to a record high of nearly £279 billion, and the exports in goods at a record high of almost £341 billion. (ONS, UK Trade: May 2018, 10 July 2018, link). 

• ·         Since 2010, total trade exports have increased by more than 38 per cent. Exports in 2010 stood at around £447 billion, rising to more than £619 billion by July 2018 (ONS, UK trade: goods and services publication tables, 10 July 2018, link).

Manufacturing has also grown strongly

• ·         UK manufacturing recorded its strongest growth for 10 years this year (BBC, 10 January 2018, link).

• ·         The United Kingdom is one of the largest manufacturing economies in the world, with nearly £270 billion in exports. Last year saw a particularly robust performance, with manufacturing growing by 2.8 per cent, compared to 1.8 per cent for the economy as a whole. We have had the longest period of consecutive monthly manufacturing growth for 30 years, and order books for British manufacturers are far higher than their long term trend. (Department for International Trade, Speech, 21 February 2018, link).

• ·         Since 2010, there are 120,000 more manufacturing jobs in the UK. In March 2010, the last measured month while labour were in office, there were 2.574 million workers in manufacturing jobs.  The latest official statistics show that in March 2018 there were 2.694 million manufacturing jobs in the UK (ONS, Labour Market Statistics, 13 December 2017, link).

Our plans back exporting and manufacturing businesses

• ·         Our modern Industrial Strategy will back Britain for the long term by driving technological advances and creating more well-paying jobs around the country.  We are investing £7 billion in new public funding for science, research and innovation – the largest increase for 40 years, developing education and skills, and backing businesses by building the infrastructure the country needs to make the country one of the most competitive places in the world (Prime Minister’s Office, Press Release, 21 May 2018, link).
• ·         Our construction sector deal will boost manufacturing by transforming building construction.  We are bringing together the construction, manufacturing, energy and digital sectors to deliver innovative approaches that improve productivity in construction and accelerate a shift to building safer, healthier and more affordable places to live and learn (DBEIS press release, 5 July 2018, link).  

The former head of the EEF said a Corbyn government would be a “nightmarish” prospect for manufacturers

• ·         The outgoing Head of the Engineering Employers’ Federation said a Labour government under Corbyn would be ‘nightmarish’. Terry Scuoler expressed fear over the ‘charm offensive’ by figures such as John McDonnell. ‘There are a number of policy initiatives which are likely to be the thin end of a hardline socialist wedge’ (Financial Times, 23 December 2017, link).

Labour’s plans for procurement would hit small businesses and hit families with higher prices and worse services

• ·         Labour’s policy on procurement would hit small businesses, social enterprises and voluntary organisations. Corbyn and McDonnell have put ‘opposition to the private finance initiative (PFI) and outsourcing’ at the centre of their plans. This would hit SMEs which have benefited from £12.2 billion worth of central government spending in 2015-16. (John McDonnell, Guardian, 16 January 2018, link; Cabinet Office, release, 11 October 2017, link).

• ·         Independent experts have stated that Labour’s approach to public procurement would lead to higher prices and worse services. Describing Labour’s municipal protectionism model, Andrew Carter, Chief Executive of The Centre for Cities, said ‘Ultimately, this comes at the expense of residents. If a firm knows it cannot be challenged or undercut by a competitor, then it can name whatever price it likes, and has no incentive to improve its service or product. The result is higher prices, inefficient public spending, and lower-quality services for people living local (The Times, 9 November 2017, link).