Enginuity, the former Sector Skills Council, which is the voice of 325,000 SMEs in the engineering and manufacturing sector, welcomed aspects of today’s budget but feels it was a missed opportunity for the UK.
Ann Watson, CEO of Enginuity said: “We welcome the Chancellor's recommitment to strengthening the skills sector today. It is heartening that the Government continues to recognise the fundamental role that skills play in the future of UK engineering and manufacturing.
“Funding to make training for under-25 apprentices free for SMEs will unlock valuable opportunities for young people to build their careers in our sectors.
“However, the devil will be in the detail. We want to see SMEs placed at the heart of developing this policy to ensure it works for everyone and Enginuity will commit to endeavouring to ensure that they are.
“This Budget was a missed opportunity to tackle fully the increasing cost base facing SMEs. Further consecutive rises to the minimum wage and lack of fundamental skills reform will continue to stifle growth in the Government's key growth sectors, impacting SMEs greatly, and limiting the success of the Industrial Strategy.
“According to Enginuity’s latest SME Snapshot survey, high employment costs are now the largest factor driving inflationary pressures and undermining the UK’s labour market. For SMEs, the backbone of UK manufacturing, these costs have become unsustainable, and more needs to be done to tackle them.
“This week, Enginuity launched The Policy Centre for Supply Chain and SMEs, which will unify and amplify SME voices at the highest levels of policymaking. We look forward to a constructive future partnership with the Government, where we can offer honest dialogue and evidence-based solutions to these problems.
“By unlocking the growth potential of SMEs, we can finally achieve the step-change that our economy needs to thrive.”
