Manufacturing: Economic Policy

Lord Bilimoria Excerpts

Wednesday 4th May 2011 Lords Chamber

[Baroness Wilcox]

My Lords, the Government fully recognise that a strong manufacturing base across the whole of the country is an essential component of a balanced and dynamic economy. We are working with business, taking action to strengthen manufacturing capability, addressing the barriers to growth in areas, trying to cut excessive red tape, encouraging innovation, export and business investment and improving skills throughout the country. It is a long haul but we are certainly on the move.

[Lord Bilimoria]

My Lords, there is a perception that manufacturing in Britain is dead. However, as the noble Lord, Lord Sheldon, said, we are still the sixth largest manufacturer in the world and manufacturing makes up almost 15 per cent of our GDP. What are the Government doing to help address this misperception? Furthermore, does the noble Baroness agree that the increase in manufacturing recently has been as a result of the weak pound and strong exports? Does she further agree that if consumption suffers because of cuts and tax increases, manufacturing may suffer as well?

[Baroness Wilcox]

My Lords, there were many questions in there and a great deal of good information too. Perhaps I should say that I agree with an awful lot of what the noble Lord has said and see whether that helps me. We are aware that we should look at tax and all the other things which hold back business, and we are doing so all the time. It is important for us to make the United Kingdom Europe’s leading exporter of high-value goods and related services, and anything the noble Lord can do to encourage and help me I will listen to.