Following Chancellor George Osborne's Autumn Statement yesterday (3 December), industry bodies have responded to the measures outlined with mixed views.
Dr Diana Montgomery, chief executive of the Construction Products Association, said: “Changes to stamp duty should boost the housing market, which had been slowing recently. Abolishing employer’s National Insurance for firms taking on apprentices acknowledges the need to develop a new generation of skilled young people across all sectors, although it should be noted that often apprentices in construction and manufacturing are above the 25 years old threshold.”
She continued: “The funding for lending extension will benefit our SMEs, as will the increased research and development tax credit for small firms. We’re also keen to learn more of the funding directed to manufacturing research. Finally, we note the £45m package to help SMEs export to fast growing emerging economies in Africa, Asia and South America; however, we feel that the lack of support for existing exporters to expand into closer linked markets is a missed opportunity.”
Meanwhile, the Institution of Engineering and Technology (IET) said that although Mr Osborne’s Statement included measures to back innovation, what is needed is a long term package of support.
IET Head of Policy Paul Davies said: “Innovation is important to the UK as it affords an opportunity to create new high value jobs to contribute to an improved UK economy. Recent studies have demonstrated the importance of the role Government plays in successful innovation in business.”
However, he pointed out that longer term support is really needed. The IET believes that the next Government will need to act in five different areas in order to achieve innovation success in the period 2015 to 2020.
It says that businesses of all sizes and from all sectors need a framework to enable them to plan their innovation strategy for long term success. In addition, there needs to be increased innovation investment support so that ideas and concepts can be proven, solutions developed and scaled up for commercial success.
The IET suggest that improved home grown skills need to be developed to support innovative businesses. The Perkins Review of Engineering Skills identified a range of recommendations for joint action between the Government, business and the wider engineering profession. Investment by government should be aligned to the needs of innovative businesses so that there is the long term goal of having UK apprentices, graduates and existing employees skilled in the required areas.
Furthermore, the IET says that the Government needs to enable more SMEs to access and exploit the available resources and investment in innovation. Finally it says that government departments need to work together to support innovation.
Dr Colin Brown, director of Engineering at the Institution of Mechanical Engineers said: “Proposals to cut National Insurance for companies employing apprentices under 25 is encouraging, but we need to ensure that all apprenticeships meet the rigorous standards of engineering apprenticeships and really do provide people with the skills and knowledge to prosper. These apprenticeships should be in industries where there is a real potential for jobs, like engineering, and that standards are verified through accreditation by bodies such as the Institution of Mechanical Engineers.”
Dr Brown added: “A number of proposals were announced to help smaller businesses access finance and invest in R&D and the investment £5.9 billion into the UK’s research infrastructure over 2016-21 is encouraging.
“But while the UK is leading the way in many areas on R&D, such as the creation and development of advanced materials, the country lags behind countries like South Korea in bringing new products to market and commercialising them.”