Clegg and Cable: manufacturing crucial to economic recovery
19 Jun 2014 04:26 PM
Ministers set out the
work the government is doing in partnership with business to help manufacturing
strengthen the economic recovery.
- companies urged to bid into
£200 million Regional Growth Fund
- new evidence of manufacturing
jobs returning to the UK
- funding for Rolls Royce as part
of drive to boost skills
- £7 million for cutting
edge aerospace research project
Ministers yesterday (19 June
2014) set out the latest work the government is doing in partnership with
business to help manufacturing strengthen the economic recovery. A series of
announcements were made by a delegation of ministers at the Manufacturing
Summit in Merseyside attended by more than 250 business
leaders.
A new round of the Regional
Growth Fund (RGF) was announced by the Deputy Prime Minister Nick Clegg with
£200 million made available to businesses across the
country.
It will be the sixth round of
the government’s flagship scheme designed to create new jobs outside
London and encourage business investment nationwide. So far the fund has
supported over 400 projects and programmes which will create and safeguard
hundreds of thousands of jobs over the long term and stimulate £16
billion of private sector investment.
A further economic boost was
delivered by news that Bee Health, based in Bridlington, East Yorkshire, has
just won new contracts that have resulted in £15 million of work coming
back to the UK from China, India and the US and will create 130 new jobs. The
company manufactures capsules, creams, liquids, powders, sprays and tablets and
has received support from the government’s Manufacturing Advisory Service
(MAS).
Deputy Prime Minister Nick Clegg
said:
Britain’s manufacturers
are helping our economy move in the right direction. Growth is up and
unemployment is down.
This government has built the
foundations for this growth by repairing and rebalancing the country’s
finances and helping to create more than 1.7 million jobs in the private
sector.
We will continue to work hard to
build a stronger economy and the Regional Growth Fund is helping us to do this
fairly by creating thousands of jobs that last and boosting the private sector
across the country.
I would encourage any businesses
that can generate significant private sector investment and sustainable jobs to
bid for a share of the £200 million available from the
fund.
Business Secretary Vince Cable
joined the Deputy Prime Minister and in his keynote speech to the Manufacturing
Summit, announced:
- a £7 million grant to the
Advanced Manufacturing Research Centre (AMRC) in Sheffield for research into
large titanium parts in aircraft. The latest investment from the £2
billion Aerospace Technology Institute (ATI) will ensure that the UK is at the
forefront of cutting-edge research and development for the next generation of
aircraft
- Rolls Royce and partners have
been awarded £4 million of grant funding to help address skills shortages
in manufacturing. The project will give 300 young people the opportunity to
undertake work experience as part of the Rolls Royce educational outreach
programme as well as offering 145 internships and 60 apprenticeships for 16 to
18 year olds. The money from the government’s Employer Ownership Pilot
will also provide support and training to staff in the supply
chain
- more young people and teachers
will be given the chance to get behind the scenes of the manufacturing industry
thanks to an expanded government and industry scheme. See Inside Manufacturing
(SIM) is to be expanded to cover all manufacturing sectors.
Business Secretary Vince Cable
said:
Government and business have
worked in partnership to develop anindustrial
strategy which will ensure that manufacturing – a key component
in our economic recovery – continues to grow. There are signs of momentum
– with production now at its highest level in 5 years – that we are
determined to nurture.
Our investment in research and
development and skills training plus a tax break which incentivises companies
to buy new plant and machinery, is giving business the confidence to invest,
securing high skilled long-term jobs and building a stronger
economy.
Dr Cable started the day by
visiting St Mary’s Catholic College in Wallasey as part of the Inspiring
the Future programme that brings leading employers into state schools to talk
about careers. The event had a particular focus on Inspiring Women, with the
Business Secretary calling for more girls to work in manufacturing. He
said:
The UK economy badly needs
technology and engineering skills. The shortfall is most acute in relation to
women, where fewer than 1 in 10 UK engineering professionals are female. This
is not good enough and must improve.
More young people are studying
science and maths at GCSE and A level but we need to do more to encourage
ambitious youngsters that these subjects are the best route to successful
careers. Only then will we bridge the skills gap. Initiatives like Inspiring
Women and See Inside Manufacturing are crucial to recruiting more young people
– and women in particular – into manufacturing
jobs.
BIS-commissioned research showed
more than half of young people (59%) enjoyed science but it was hard to know
what careers are available in this area; 4 out of 5 (83%) agreed jobs in
science, technology and engineering are about making a
difference.
The summit also saw Business
Minister Michael Fallon announce that a new government-funded body to attract
inward investment to the UK has smashed its targets in its first
year.
The Automotive Investment
Organisation was created to spearhead inward investment in to the UK. It has
achieved:
- £457 million worth of
investment
- 80 projects funded –
beating the target of 60 projects
- more than 5,600 supply chain
jobs secured - beating the target of 4,000 jobs
Mr Fallon said:
Manufacturing is driving the
UK’s recovery and our vibrant automotive sector is leading the way in
helping to create jobs and generate growth.
The Automotive Investment
Organisation can take some of the credit. It has got off to a cracking start
– beating its initial targets by securing over £450 million of
investment and creating and safeguarding more than 5,600 jobs in its first
year.
Notes to
Editors:
- See Inside Manufacturing (SIM)
involves businesses opening their doors to young people and teachers, allowing
them a first-hand view of modern manufacturing and the exciting careers
available. The 10 current sectors participating in SIM are
Automotive, Aerospace, Nuclear, Oil & Gas, Offshore Wind, Construction,
Life Sciences, Electronics, Chemicals, and Food & Drink. SIM will
now be extended to all manufacturing sectors.
- Further detail about the
achievements of the Automotive Investment Organisation in its first year can be
found at Automotive Industrial strategy: securing investment and creating
jobs
- Developing an industrial
strategy gives new impetus to the government’s economic policy objective
to achieve strong, sustainable and balanced growth, by providing more clarity
about the long term direction in which government wants the economy to
travel.
- Further information on
industrial strategy can be found at Industrial strategy: government and industry in
partnership