On 8 September the Government unveiled a new strategy for the UKs manufacturing sectorNew Challenges, New Opportunitiesto help UK firms take advantage of changing global trends in manufacturing. A summary document is also available.
In bringing forward its refreshed manufacturing strategy, developed by the Department for Business and the Department for Innovation, Universities and Skills, in partnership with industry, the Government are reaffirming its commitment to the sector as a key part of a mixed and balanced UK economy in the future.
The refreshed strategy is intended to set out a dynamic framework which will shape further new policies and programmes in the future. It builds on the Governments manufacturing strategy of 2002, which was the first strategy for the sector for more than 30 years.
The environment facing manufacturers has undergone and continues to face significant change. To understand what is powering these shifts we have conducted consultations with the Ministerial Advisory Group on Manufacturing and other stakeholders, and drawn upon academic and survey evidence. This has revealed the importance of five inter-related dynamics that have been and continue to be instrumental in reshaping global manufacturing.
The increasing prevalence and complexity of global value chains, underpinned by developments in information and communication technology, and consequent fragmentation of processes, encouraging specialisation.
The accelerated pace of technology exploitation as the pace and demand for change implementation has increased.
The growing importance of investment in intangibles such as design, branding and R&D.
The increased recognition that investment in People and Skills is among the most important for companies to make.
The move to a low carbon economy as the response to climate change creates both new challenges and opportunities for manufacturing firms.
These dynamics are described in detail in the Economics paper: Five Dynamics of Change in Global Manufacturing, which accompanies the strategy. The strategy itself sets out Governments view of what the sector needs for success in the long-term. It includes:
Global Value Chains: International fragmentation of productionManufacturing attracts more FDI to the UK than any other country in Europe and globally the UK is second only to the US. Manufacturing growth in other countries means opportunities for the UK. UK Trade & Investment (UKTI) will allocate additional resources to target a package of new support for 600 UK companies of all sizes to identify manufacturing value
chain opportunities in India and China. And the UK Intellectual Property Office (UK-IPO) will advise on using and protecting IP in these markets.
Technology exploitation: Accelerating the spread of new technologiesIn addition to the existing centre in Yorkshire and the centre currently being built in Glasgow, there will be a new Manufacturing Technology Centre in Coventry. It will have industrial scale pre-production and demonstration facilities, which could lead to £130 million of investment in business-led applied research and its exploitation over the next 10 years. And the Technology Strategy Board will invest £24 million into research central to high value-added manufacturing.
Intangibles: Competitive advantage from non-traditional elements of manufacturingFirms in the UK are using other areas of leading British skills and industry to make them more globally competitive. UK and global businesses are growing their investment in intangible or knowledge assets, such as software, design, brand building in order to improve their global competitiveness and to meet the changing needs of customers. The Design Council and Regional Development Agencies will implement the findings of the current review of the Designing Demand programme to increase penetration of the programme across the regions. We have supported the creation of the UK Design Skills Alliance and will work with the alliance to help ensure the world-leading UK design sector has the skills required by manufacturers to compete in global markets.
People: Improving the skills base and attracting talent into manufacturingThe strategy sets out a renewed focus on apprenticeships, including the extension and expansion of high quality apprenticeships by approximately 1,500 new places, in addition to the 9,000 places announced earlier this year. We will expand apprenticeships by inviting bids from larger manufacturers to train additional apprentices, including for their supply chains. And for manufacturers, there will be a clear focus on simplifying their experience of the skills system so they can quickly and easily access the skills and training support they need. The Memorandum of Understanding published alongside the strategy sets out how delivery partners will work together to simplify the offer to employers.
A new body, Manufacturing Insight will be tasked with making the public perception of manufacturing reflect the reality of a successful, modern and broad sector and ensuring young people are aware of the exciting career opportunities available. There will also be a Manufacturing the Future schools campaign to promote manufacturing career prospects to young people.
Low Carbon Economy: Opportunities for manufacturingNext year, a low carbon industrial strategy will address the challenges facing manufacturers as they try to reduce their carbon footprint and the huge opportunities from investment in energy and a shift to a low carbon economy. The Office of Nuclear Development will work with industry partners to develop the nuclear supply chain and maximise high value-added work captured by UK manufacturers from an estimated £20 billion capital expenditure in nuclear. And a new Office for Renewable Energy Deployment will be established to address barriers to renewables deployment including helping to develop the UK supply chain. Nuclear and renewables alone could create up to 260,000 jobs over the next ten years.
Related documents have been placed in the Libraries of both Houses. These are:
Manufacturing: New Challenges, New Opportunities (summary document)
Manufacturing: New Challenges, New Opportunities (full strategy documentprint out of document published on the BERR and DIUS websites)
BERR Economics Paper No. 2: Five Dynamics of Change in Global ManufacturingUnderpinning Economic Analysis
Memorandum of Understanding: Education and Training Support in the Manufacturing Sector.
The Economic Secretary to the Treasury (Kitty Ussher): I am today laying before Parliament, the annual European Community Finances White Paper Statement on the 2008 EC Budget and Measures to Combat Fraud and Financial Mismanagement (Cm 7371). This White Paper is the 28th in the series. It gives details of revenue and expenditure in the 2008 EC Budget and covers recent developments in EC financial management and measures to counter fraud against the EC Budget. It includes information on amendments to the arrangements for the financing of the annual budget of the European Communities in the Own Resources Decision area. It also includes updates on the EC Budget review, the new Own Resources Decision and recent measures taken to improve the management and control of the EC Budget.
The Exchequer Secretary to the Treasury (Angela Eagle): I welcome the work of the Public Accounts Commission (TPAC) on the new governance arrangements for the National Audit Office (NAO) as set out in its Sixteenth Report (HC 1027) published on 24 July.
The Government will continue to work with TPAC, the NAO, Ministry of Justice and Parliamentary Counsel to prepare provisions for the Constitutional Renewal Bill to implement the Commissions recommendations.
During a conciliation meeting between the Council and the European Parliament, six joint statements relating to the Budget were agreed. These concerned: Structural and Cohesion Funds and Rural Development 2007-13 programmes; Recruitment in Relation to the 2004 and 2007 enlargement; the EU Solidarity Fund; the European Globalisation Adjustment Fund and Emergency Aid Reserve; Implementation of the Budget in 2009; and an update of Administration financial programming. In addition Council agreed further statements on Payment Appropriations and Evaluation of Agencies.
The Parliamentary Under-Secretary of State for Communities and Local Government (Mr. Iain Wright):
The Homes and Communities Agency as established in
the Housing and Regeneration Act 2008 will for the first time bring together in one agency housing and regeneration funding, public land and expertise to deliver decent, affordable housing and regenerate our communities by creating places where people choose to live. It will play a key role in turning our ambition to deliver three million new homes by 2020 into a reality.
As part of that role, I am today announcing that from 1 December 2008 the Homes and Communities Agency will take on responsibility for the Gypsy and Traveller Site Grant, which provides funding for the provision and refurbishment of Gypsy and Traveller sites. This approach will bring delivery of homes for Gypsies and Travellers into line with the arrangements for housing and accommodation delivery for the rest of the community. It reflects our determination to address the existing shortfall in accommodation for all in society, tackling the problems that can be caused by unauthorised camping and the poor life chances of Gypsies and Travellers themselves.
The HCA will be responsible for administering the Gypsy and Traveller Site Grant to meet ambitious but realistic targets for the delivery of pitches across England. Through its close relationship with local authorities and other delivery partners, the HCA will be well placed to step up the pace of delivery for the benefit of both Gypsies and Travellers and the settled community. This approach responds to the findings of the independent task group on site provision and enforcement, chaired by Sir Brian Briscoe, whose report issued in December found that the policy framework for site provision was sound, but that delivery was slow.
Ministers will continue to have oversight of the programme, ensuring that it achieves the Governments objectives of meeting Gypsies and Travellers accommodation needs and supporting community cohesion. We will also be asking the HCA to recommend any changes to the programme for 2010-11 that may be necessary to improve delivery. The sum of £97 million was allocated for the grant through the CSR07 period, and funding for 2009-10 and 2010-11 will be transferred in full to the HCA on its establishment.
To match England Performance at key stages 1, 2 and 3 in all subject elements.
In each of the key stages 1, 2 and 3 exceed national (England) achievement by 3 per cent. in a majority of the 12 subject elements.
At the higher levels of attainment (that is, level 3+ at key stage l, level 5+ at key stage 2, level 6+ at key stage 3) match or exceed the national level of performance in 10 of the 12 subject elements.
At GCSE level, improve the percentage of pupils achieving five or more A*-C (including Maths and English) from 2007-08 (45 per cent.).
At GCSE level, achieve an average points score within 10 points of the national (England) capped upper quartile figure.
At GCE A-Level, achieve 72 per cent. of pupil entries obtaining grades A-C.
SCE to achieve a notional position in the English local authority league tables, within the leading 25 (of 150) LAs at each of key stages 1, 2 and 3.
To achieve Grade 3, or above, for the overall effectiveness of the school in 100 per cent. of schools inspected, and Grade 2, or above, in not less than 66 per cent. of schools inspected.
To achieve an overall parental customer satisfaction rating of at least 85 per cent. in the 2008-09 parental survey.
The Parliamentary Under-Secretary of State for Defence (Derek Twigg): I have today placed in the Library of the House a revised report giving a detailed account of the low flying training that has taken place in the UK Low Flying System for the training year April 2007 to March 2008.
The Secretary of State for Foreign and Commonwealth Affairs (David Miliband): The latest report on the implementation of the Sino-British Joint Declaration on Hong Kong was published today. Copies have been placed in the Library of the House. A copy of the report is also available on the Foreign and Commonwealth Office website at: www.fco.gov.uk. The report covers the period from 1 January to 30 June 2008. I commend the report to the House.
The Secretary of State for Foreign and Commonwealth Affairs (David Miliband): I refer hon. and right hon. Members to the written (Prime) ministerial statement made by my right hon. Friend the Prime Minister today.
The Secretary of State for the Home Department (Jacqui Smith): I would like to update the House on the loss of sensitive data by PA Consulting and to inform the House that the Home Office has terminated the contract with PA Consulting that covered the handling of these data.