Ignite your eef strategy jul 13

Ignite your eef strategy jul 13

• 1.
  Building a stronger,better balanced economy Lee Hopley EEF Chief Economist 16th July 2013
• 2.
  Overview • Economic ambitionsv reality • The role of manufacturing in a better balanced economy • An industrial strategy – where now for government?
• 3.
  A different typeof growth, forecast contributions to growth • “gradual rebalancing of the economy, with business investment and exports playing a greater role and government spending and debt-fuelled consumption a smaller role.” George Osborne 22/6/10 • “An economy that is seriously unbalanced both in its sectoral mix and in its regions.” Vince Cable 03/06/10 • “To achieve a rebalancing we need to sell more to, and buy less from, economies overseas” Mervyn King 19/10/10 Source: Office for Budget Responsibility
• 4.
  Some signs ofgrowth, % quarter on quarter change in GDP Source: National Statistics
• 5.
  ..but the betterbalanced kind still elusive, business investment £m, and goods trade balance £m Source: National Statistics
• 6.
  Manufacturing – ambitionsand characteristics right for rebalancing • Accounts for: • Half of UK exports • 70% of exports to BRICs • 36% of manufacturers export • Over 70% of BERD • 13% of CT receipts • 12% of capital investment • Aiming for: • Increased growth from emerging markets. • Opportunities to diversify into new supply chains. • Commercialising new technologies. • Higher levels of productivity. • Collaboration on innovation priorities.
• 7.
  Government has arole in supporting better balanced growth • There is a lot going on! • Sector strategies • Localism • Infrastructure • Business Bank and review of business support • Tax reform – competitiveness and simplification • £1tillion export target • But something is still missing…
• 8.
  A strategy forgrowth A vision for the economy beyond simply balancing the books with a coherent approach across government and clear accountability
• 9.
  A clear visionfor the economy
• 10.
  Consistency and accountabilityacross government 900,000 SMEs paying for corporation tax cut with lower capital allowances Tax avoidance debate Unilateral carbon tax pushing energy costs above EU counterparts No plan to promote FLS to those who need it Adding costs with pay audits and fines for employers losing Tribunals    Migration policy encourages foreign students to leave after graduation Bad for Growth Good for Growth 50,000 companies benefitting from lower corporation taxes Lowering the regulatory burden from the CRC Commitment to keep green policies in line with the rest of Europe £80 billion Funding for Lending Scheme to increase flow of cheaper finance to business Reducing regulation with Tribunals and Redundancy laws reform Apprenticeships funding increased with efforts to drive up standards Closer cooperation  across  departments Decision-making  structures that are  fit-for-purpose  Open and transparent  commitment to make  progress on its economic  ambitions Not just  implementation –  decisions must be  aligned with  ambitions Transparency on  progress
• 11.
  Making it happen… AmbitionHow will we know we are making progress? More cos bringing new products and services to market Include innovation funding in the Science budget ring fence and retain national decision-making on spending A further 25% expansion of the TSB SMART scheme More globally focused cos expanding in the UK Long term capital allowances reform Review potential action to increase competition in SMEs banking, including a switching incentive A lower cost of doing business Implement Loftstedt review to simplify H&S regulation Compensate electro-intensive manufacturers Work with EU partners on better regulation A more productive and flexible labour force Reinstate the Tier 1 post-study work route Extend Industrial Partnerships across the economy Re-directing funding for apprenticeships from providers to employers through the tax system
• 12.
  A foundation forrebalancing Energy Access to finance Education Infrastructure Taxation Regulatory Burden Planning Higher skill levels Tax and investment Export support Procurement Higher education/ business collaboration Tax and innovation TSB/ catapults Sector councilsForesight project Technology support Future proofing Supporting business entering new markets Helping businesses invest and expand Industry business environment priorities Creating a sustained strong foundation for business More businesses bringing new products and services to market More globally- focused companies choosing to expand in the UK A lower cost of doing business A more productive and more flexible labour force Rebalancing