Articles
There’s been much talk in political spheres about the need to rebalance the economy away from the financial sector and towards companies that actually deliver real value by making things. Sadly, much of it has been just that: talk.
So it was a huge relief to see the government put some meat on the bones of the previously announced Regional Growth Fund, with 119 manufacturing firms benefiting from a total of £950 million in grants. The cash will help to kickstart investment and create highly skilled jobs at a time when the economy desperately needs it.
A trawl through the myriad of different projects that attracted funding reveals some really worthy engineering-related allocations. Engineering research facility MIRA received a grant of £19.4 million which it will plough into the redevelopment of its Nuneaton vehicle test site, potentially resulting in 2,000 new jobs over the next few years.
Luxury carmaker Bentley has confirmed that its growth fund grant will support the development of a new engine at its Crewe site, while sports-car maker Lotus said that the cash it has received would underpin a six-year expansion plan at the Norfolk-based company.
In other sectors, advanced materials group Johnson Matthey will spend its allocation on engineering resources for catalyst products; while Cummins will invest in diesel engine manufacturing. Meanwhile, Getrag Ford Transmissions is to expand capacity for the production of transmissions at the Halewood plant on Merseyside.
These are real projects that will deliver real benefits, but it’s vital that the money flows through directly to them as a matter of urgency. Too often these sorts of government-backed schemes are dogged by bureaucratic funding mechanisms that hamper any momentum that might otherwise be built up. With the economy in such a parlous state, the projects supported by the Regional Growth Fund need to be started as soon as possible.
While due diligence has to play an important role, it’s in no one’s interest to allow the lawyers and bean counters to hinder the process of turning plans into action.
Of course the growth fund alone won’t be enough to kickstart the manufacturing and engineering sectors. Such an ambition requires bolder thinking – most notably a commitment from government to accelerate the pace of large-scale infrastructure projects to help stimulate activity in the private sector.
Delivery of the Crossrail mega-project in London, for instance, could be given greater urgency. Or perhaps the oft-stated plans to invest in the digital network in rural areas could be speeded up.
Indeed, there are encouraging signs of acknowledgement of the need to bring forward investment in infrastructure. Government officials last month gave the green light to two power plants – at Ferrybridge in West Yorkshire and Thorpe Marsh in South Yorkshire – at a combined investment of £1.2 billion. Notably, ministers indicated that the schemes were part of a wider plan to unblock the backlog of planning applications and get big projects under way. The new stations will help underpin energy policy, while leading to investment in equipment.
Now is the time for more of the same sort of action across sectors such as energy, transport and information technology. Only by developing an urgent strategy that privileges infrastructure development and reduces red tape will the UK’s recovery start to get back on track.