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UK manufacturing ''could fill public sector gap''

23 November 2010
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UK manufacturing ''could fill public sector gap''The gap in economic growth that is expected as a result of public spending cuts in the UK could be filled by the manufacturing industry, a new report claims.

According to the study entitled The Shape of British Industry by EEF, the manufacturers' organisation and the Royal Bank of Scotland (RBS), companies concerned with production could lead private sector growth.

Industry group EEF has called on the government to employ policies that both support small enterprises and ensure larger companies are able to expand their operations.

A poll of 300 businesses indicated 76 per cent expect to boost innovation in order to meet expansion targets and 40 per cent cite exports as responsible for more than half their total turnover.

RBS Corporate and Institutional Banking head of manufacturing sector Peter Russell said: "Manufacturing continues to make a significant contribution to the UK economy and is well placed to play an even greater role in a sustained economic recovery."

In a recent Telegraph interview, the new CBI director-general John Cridland claimed future UK growth will be reliant on industry.ADNFCR-3058-ID-800250869-ADNFCR
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