EEF issues mixed verdict on Autumn Statement

Commenting on the chancellor's statement, the manufacturers' organisation EEF's chief executive Terry Scuoler said that while it was a targeted attack on barriers to growth with some helpful measures, these are not normal times. He went on: "With confidence so low, there are question marks over whether enough funding has been prioritised in the right areas to secure the substantial rise in business investment that it is forecasting for next year. "In the coming weeks and months the government must address two key priorities: the urgent need to increase competition in the banking sector and boost business investment by introducing a temporary rise in capital allowances." The organisation's chief economist Lee Hopley welcomed changes to R&D tax credits, saying they would "send a powerful signal that government intends to make the UK the number one choice for R&D investment and is another step on the road to making the UK to the most competitive tax system in the G20". Scuoler also welcomed changes in the value of climate change agreements and the provision of funding for energy efficiency through the Green Investment Bank. On the subject of access to finance, Hopley, said the statement demonstrated the government's resolve to improve things. "With confidence low, companies already have plenty of other reasons to hold off borrowing to invest and measures which reduce borrowing costs and increase access to other sources of funding, especially for smaller companies, is vital," she said.