CBI calls for national manufacturing aid in spending review
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The government must abandon regional support for manufacturing in favour of co-ordinated national aid under the spending review, the CBI has said.
Bringing sector, innovation and R&D policy under a central banner will boost coordination and reduce admin cost, the CBI stressed.
The move will also aid cross-sector investment in areas including low carbon technologies, the CBI added.
"Increasingly the government's focus should be on building national capacity and capacity for the UK to compete internationally," a briefing paper from the CBI said.
"Some sectors do naturally cluster..but this does not mean public intervention should be constrained by regional boundaries," the CBI added.
The Innovation and Growth Team (IGT) model was "vital" to success, the CBI said. IGTs should work closely with the Technology Strategy Board to set priorities with business, the CBI recommended.
Public sector procurement should also be linked more closely with manufacturing to boost innovation and investment, the CBI stated.
The CBI document also called for greater support for electric vehicles that boost UK manufacturing.
Overall, the 45 page paper urged the government to protect economic growth in its spending review by prioritising growth areas.
John Cridland, CBI deputy director general, said: "Cutting spending means tough choices. We think the need for economic growth, not the noise of the loudest voice, should determine where cuts are made."
