Trade bodies are calling upon Chancellor Philip Hammond to use his forthcoming Autumn Statement to introduce a “moderate fiscal stimulus package” to boost growth in the manufacturing sector.
The calls come from EEF, which says that UK manufacturers are in need of support, after a survey revealed that up to a quarter are holding off plans for expansion and investment in the wake of the European Union (EU) Referendum.
According to the EEF, ‘increased political volatility’ has had a knock-on effect to growth in the sector.
However, despite the trade body’s concerns, data released in recent weeks suggests that UK factory output increased by 0.6 per cent in September 2016 – exceeding the expectations of economists, many of whom predicted a rise of just 0.4 per cent.
Nevertheless, the EEF has proposed a fiscal stimulus package with a view of supporting firms in the sector with increased research & development (R&D) tax credits and additional funding to support exports.
The trade body has also called for the Government to ‘push through’ infrastructure commitments to support the sector.
Terry Scuoler, EEF chief executive, said: “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.”