The Comprehensive Spending Review (CSR) must go beyond cutting the deficit and show how government will partner with manufacturers to drive economic growth, the EEF has said.
Steve Radley, EEF director of policy said: "This review goes well beyond thinking about just the way government spends its money. The chancellor has a unique opportunity to make or break with the past and set out how it will become a more sophisticated and strategic partner."
The comments came in the EEF's official submission to the CSR, which is due to be published on 22 October.
The EEF demanded transparency on programmes and policies that will get government backing.
Apprenticeships were one key area that demanded ongoing resource according to the EEF.
The EEF urged ministers to make the skills system more efficient and effective. Investment in STEM subjects and diplomas must continue, the EEF said.
The EEF also called for more help to be given to manufacturers to take innovations to market.
The chancellor must also maintain spending on R&D and simplify mechanisms for business finance, the EEF added.
Radley said: "The chancellor must set out a clear, stable strategy that couples deficit reduction with government priorities for growth and investment, and then stick to it."
Click on the PDF below for the full EEF response to the CSR