This week's Budget statement must give priority to measures which will boost growth and productivity with targeted measures on infrastructure, skills and business taxation according to Britain's manufacturers.
Making the call, EEF, the manufacturers' organisation supports the need for fiscal consolidation but warned that by ring-fencing Budgets for some departments the government has unnecessarily tied its hands.
Instead, EEF is urging the government to use the current economic growth to carry on backing the successful industrial policy of recent years. This means continuing to support initiatives on technological innovation, boosting Apprenticeships and delivering on major infrastructure programmes, from road improvements to a new runway at Heathrow.
EEF recently published a survey showing this supportive approach has paid dividends with a third of companies viewing the UK as a more competitive place to invest in than two years ago.
"The challenge for this government is to take the economy from recovery to sustainable growth," EEF chief executive, Terry Scuoler, said. "That requires stable policy with an eye to building the skills, infrastructure and technological innovation which will allow internationally competitive, high productivity cmpanies to succeed in the UK.
"Manufacturing will be critical in tackling the UK's productivity and skills gaps and the government will continue to need an overall industrial strategy aimed at rebalancing the economy. If there must be spending ringfences, the government should draw them as tightly as possible, and maintain strong pressure for reform within those departments.
"Instead of an across-the-board tariff cut for all unprotected departments, this week's announcement should prioritise reforms to business taxation and investment in future technology, infrastructure, skills and other contributors to productivity growth."
In its submission EEF has called on the Government to set out a roadmap for the development of business taxation to 2020 while ensuring a tax system that encourages investment in future productive capacity, including reforming capital allowances to ensure they mirror actual depreciation, restoring buildings investment allowances.