EEF - The Manufacturers' Organisation

09/26/2018 | Press release | Distributed by Public on 09/26/2018 08:23

EEF comment on Jeremy Corbyn speech and PM's tax plans

Commenting on the speech by the Leader of the Opposition, Stephen Phipson, Chief Executive of EEF, the manufacturers' organisation, said:

'Industry will give its full support to any plans for a fair and just society and has no track with companies who treat workers unfairly or pursue reckless greed. Companies will also support plans to boost green technologies and improve our infrastructure and public services.

'However, the private sector plays a huge part in creating wealth which helps ensure we can improve vital public services across the UK. It must not be over regulated. Too much interference will stifle growth and not help tackle the productivity gap.

'In uncertain economic times we must all avoid a chill on the vital investment we need to transform our economic performance. EEFwill work hard across the political spectrum to ensure that Britain's vital manufacturing sector has a voice in the development of economic policy.'

Commenting on the speech by the Prime Minister and plans to reduce Corporation tax, Ms Lee Hopley, Chief Economist at EEF, the manufacturers' organisation, said:

'Industry welcomes any review of the corporate tax landscape, especially where incentives to boost investment are concerned given the importance of its relationship to productivity and the longstanding capital gap with our major competitors. However, reducing the level of Corporation Tax by two per cent must be just one part of a package of measures that will start to counteract some of the significant headwinds to investment in the UK right now - to suggest otherwise misunderstands the complex set of factors which go into investment decisions.

'Govt should also focus on ramping up its ambition on industrial strategy delivery. The first anniversary of the industrial strategy white paper in on the horizon and we've seen some good progress in areas such as expanding funding for science and innovation. But it doesn't feel to business as though this is yet a cross-government effort. Getting the now overdue industrial strategy council up and running would be a great next step, with the autumn budget following up with some bold measures to get investment flowing, not just from big foreign-owned corporates but right across the supply chain.'

EEF will publish its 2018 Annual Investment Monitor embargoed for Monday 1st October