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<p>Manufacturing is crucial to our recovery, export and future growth in productivity. The Government is working with manufacturers and their supply chains, and is taking steps to strengthen and grow modern manufacturing in the UK by encouraging innovation, business investment, technology commercialisation, skills and exports. There is a focus on advanced manufacturing in the Government's Industrial Strategy—11 sector strategies have already been published.</p><p>In his last autumn statement, the Chancellor of the Exchequer, my right hon. Friend the Member for Tatton (Mr Osborne), announced a number of measures which will benefit manufacturing. These include a significant temporary increase in the annual investment allowance, from £25,000 to £250,000 for two years from 1 January 2013; £120 million for two further rounds of the Advanced Manufacturing Supply Chain Initiative; and increased funding of £140 million to help UK Trade and Investment (UKTI) deliver an ambitious package of support to get more companies exporting and attract more, high value investment into the UK.</p><p>UK based manufacturers can also access financial support through the regional growth fund (RGF), which is a flexible and competitive £3.2 billion fund operating across England from 2011 to 2017. It supports projects and programmes that are using private sector investment to create economic growth and sustainable employment. Round 5 of the RGF will open on 11 October 2013.</p><p>The Manufacturing Advisory Service (MAS) is the principal direct business support vehicle for small and medium-sized enterprise manufacturing and engineering companies. More than 11,000 firms have received specialist support from MAS with long-term strategy, securing efficiencies, developing new products and supply chain development since the national offer was introduced in January 2012. This assistance is set to safeguard 30,000 jobs with the potential to create over 11,000 new positions over the next year and generate economic growth in excess of £900 million.</p><p>Innovation is one key area where the Government has a role in ensuring that UK manufacturing's future is a prosperous one. Seven “Catapult” innovation and technology centres have been launched, including one focused on high value manufacturing, and £600 million of support was announced in the last autumn statement to develop the “eight great technologies”.</p><p>On skills, we are improving technical education at a young age by setting up a new generation of university technical colleges. 45 have now been announced. Apprenticeship starts in engineering and manufacturing technologies reached over 59,000 in 2011/12—up 22% on the previous year. The Employer Ownership programme allows employers to develop their own vocational training programmes, creating thousands of apprenticeship and training opportunities for young people. With respect to skills shortages in engineering, Professor John Perkins (BIS Chief Scientist) is leading discussions with industry and learned bodies to ensure we understand the scale of</p><p>the challenge and take sufficient action so that manufacturers can secure the skilled engineers they need. His report will be published later this year.</p> |