Main parties pledge investment in manufacturing

News Article - 06 May 2010
Category: Business

In the last TV debate all three party leaders faced questions over how best to revitalise the manufacturing industry, which has suffered during the economic crisis.  Whilst there was general agreement over some issues, in particular the need for investment into academia and apprenticeships, many of the topics raised were divisive.

Both Nick Clegg and Gordon Brown quickly pointed out that many manufacturing companies fail because finance is difficult to access. Mr Clegg said that getting banks to lend more freely was a priority for the future, in addition to investing in areas that would improve infrastructure as a whole, such as renewable energies. Mr Brown reiterated his party's pledge to create a new bank arbitrator position, which would oversee lending and ensure businesses could access the finance needed to function effectively.

David Cameron stressed the importance of 'rebuilding' the manufacturing industry, with significant investments in science, universities and apprenticeships to attract key talent. He advocated creating 200,000 new apprenticeships if elected. Gordon Brown responded with figures citing Labour's commitment to apprenticeships, saying the number had trebled from 70,000 in 1997 to 200,000 now. Mr Clegg also mentioned the importance of 'rebuilding' but argued bank lending was the element preventing the manufacturing industry from regaining stability.

Later on the leaders clashed on the green economy, which is quickly becoming a valuable market in the manufacturing industry. Mr Clegg argued the government was doing nothing to support the manufacture of wind turbines and other up-and-coming eco-friendly technologies in the UK. Gordon Brown responded by pointing to four companies that had already pledged investment in renewables.

One of the biggest polarisations was between Labour and the Tories over corporation tax, an issue that has been divisive since the start of the election trail. Gordon Brown is firmly opposed to Conservative plans to cut corporation tax, arguing it will stifle the flow of capital from larger firms to struggling SMEs. David Cameron defended his party's proposals, stating the cut in corporation tax would allow all companies to reinvest profits and become more sustainable.

Access supports measures that sustain the UK manufacturing industry and allow it to regain momentum following the damaging effects of recession. The detrimental effects of the economic crisis are still making it difficult for smaller manufacturing companies to remain profitable - this can affect larger firms who rely on a robust supply chain. Access software offers full support to the manufacturing sector with features designed to maximise efficiency and promote sound financial management, such as real-time inventory updates.

Article keywords: manufacturing industry, economic crisis

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