Rising business costs must not be ‘thin end of an ever-thickening wedge’, warns EEF chief executive

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George Osborne must reassure manufacturers that there will be no further increases to the cost of running a business in his forthcoming budget speech, according to EEF chief executive Terry Scuoler.

Writing in The Daily Telegraph, Scuoler warned the chancellor against burdening British businesses further, following recent changes such at the apprenticeship levy and a national living wage.

Scuoler said: “It is why, when the chancellor stands at the dispatch box next week, it is critically important that he signals that the cost increases on the drawing board are not the thin end of an ever-thickening wedge. He must also indicate that the government will take a better-balanced and more considered approach to some of these measures."

The EEF chief executive also urged the government to bring back a coherent approach to help manufacturers, as opposed to what he describes as “industrial strategy by crisis management”. Examples of how the government can endorse this include further investment in R&D and innovation and support for business hubs such at the Catapult Centres.

Scuoler went to call for a “world-class infrastructure network” to support British business.

“This means having the courage to further expand the strategic road network, including A-roads and key linkages,” he said. “It also means fixing the backlog of local road repairs, as well as finally implementing the Airports Commission’s recommendation for an additional runway at Heathrow and ensuring the UK is at the forefront of digital connectivity.”