Call for government to support competitive manufacturing culture

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UK manufacturing invests too little in innovation, automation, skills, exporting and long-term financing, according to a cross party parliamentary group.

Owners and managers of manufacturing businesses are also too reluctant to engage with support packages and business development programmes that would make competitive business practices, said the All-Party Parliamentary Manufacturing Group (APPMG) in a report – Making good: A study of culture and competitiveness in UK manufacturing. Inquiry co-chairs Jonathan Reynolds and Chris White said in the report's foreword: "We hope that this [report] will set the tone for more discussion of industrial culture across industry, academia and Government. We have, however made some recommendations for structural and behavioural changes that we think would help improve conditions for manufacturing in the UK." The report said: "Growth, consolidation of growth, and future resilience of productive industry in the UK will only come about with some political and industrial focus on culture, and the need to find ways of making competitive behaviours more intuitive," it said. The APPMG said the 'political sphere' must promote the long-term attitude required from businesses through its own behaviours and policy decisions. It added: "We believe that agreeing the broad principles for a long-term fiscal environment for investment would also give enough freedom and flexibility to future Governments on their own tax and spending commitments. "Fiscal tools that encourage investment – tax credits, capital allowances, etc – are, we heard in evidence, much more powerful tools for changing industrial culture than, for example, the top level of corporation tax."