Budget 2016: Manufacturing Sector

Posted On March 18, 2016 By mhauk

Employment imageChris Coopey, Head of our Manufacturing group shares his views on the budget and how it impacts the Manufacturing sector.

The chancellor’s budget was broadly positive, particularly for small businesses and included a number of sweeteners (every pun intended) around Corporation Tax, Business Rates and reduction of Stamp Duty on Commercial Property. There was also some regional investment – mainly in the Midlands to promote a number of projects around innovation and Research & Development.

For the manufacturing and engineering sector the changes were pretty agnostic, however, one announcement may have a fundamental effect on the ability of the sector to deal with its skills deficit – all state schools would by 2020 have to become, or have plans to become, Academy schools. Academy schools are effectively self managing and independent of local government, but they are funded directly from central government. The good and the bad news is that they can make many decisions around the priorities they follow by themselves. That may be useful, but when the nation has a strategic need to produce more engineers it is a potential problem, unless the Government decides to target and point all of those schools in a particular direction.

For the manufacturing, engineering and technology sector, central government needs to target and fund such schools not only to deliver a STEM biased curriculum, but one with an appropriate vocational slant. This should equip young people with the skills needed by businesses in future. The resultant quality of Engineering Apprentices going into schemes funded by the new Apprenticeship Levy (not one of the Chancellor’s most popular moves) would then improve.

So, if the Government is still interested in orchestrating the ‘March of the Makers’, perhaps it should now grasp the opportunity to meet one of the fundamental aims of our national educational system, which is to make sure that enough young people are given the opportunity to attain the qualifications and motivation to join a sector where one of the main barriers to growth has been a long standing skills shortage.

Contact us
If you would like to understand more about any of these areas or would like to discuss this with a member of our Manufacturing Team, please contact Hannah Farmborough or call on 0207 429 4147 to be put in touch with your local representative.