Enginuity, regarded as the voice of SMEs in manufacturing and engineering, has welcomed elements of the Budget but stresses that more needs to be done to relieve pressure on this vital sector.
"The Chancellor was correct to recognise the significant pressures facing businesses," says Ann Watson MBE, CEO of Enginuity Group. "Our most recent Snapshot Survey revealed that 80% of engineering and manufacturing SMEs faced pressure to raise prices due to increasing labour and raw material costs.
“The number of SMEs in the sector under pressure to raise prices due to energy costs had also more than doubled since the previous survey. The Chancellor’s actions to reduce energy costs facing employers is therefore certainly a welcome step. However, greater emphasis must now be placed on reducing the wider costs SMEs face, so they are able to create more jobs and invest increasing amounts in training the next generation.
"Over the coming months, we look forward to greater clarity on the Government’s commitment to tackling youth unemployment. Right across the UK, many young people are struggling to find pathways into work. Meanwhile, around two-thirds of engineering and manufacturing SMEs say they are not running at full capacity.
“If Alan Milburn's final recommendations are to create more workplace opportunities for young people, government policy must also support SMEs to offer more workplace opportunities. Policymakers should explore targeted financial incentives to directly encourage greater employer investment in skills and training, offsetting those costs that currently hold employers back.”
