The economy remains fragile. How should the government help to stimulate growth?
Readers offer their views
- Published in Soundbites.
The economy remains fragile and is expected to expand just 1.1% in 2011, compared with 1.9% expected at the start of the year. What additional actions do you think the government needs to take to help stimulate activity, especially in the engineering and manufacturing sector?
Investment in large capital projects is a must. These provide immediate jobs and long-term infrastructure. HS2 is a good example. Japan began the shinkansen project over 50 years ago. The modern Japanese economy would not be what it is today without that vision.
Tim King, Tamworth, Staffordshire
The government should support and facilitate the building of a tranche of nuclear power stations. The design phase requires engineers, the procurement and manufacturing phase begins to disseminate the skills required, while the build phase supports local economies. The outcome is clean electricity.
Charles Melton, Brighton, East Sussex
Reduce wasteful expenditure. Examples are aid to foreign countries, many of whom have higher growth than ourselves; salaries and inflated gold-plated pensions to non-productive quangos and public service officials. Private industry rises or falls by its own efforts. “No profit” does not mean a pay rise and super pension.
Name and address supplied
Provide more funding for new manufacturing facilities and start-up engineering companies.The government should be stimulating growth rather than introducing cuts everywhere.
Jim Rose, Nottingham
The fundamental solution for growth is to stimulate demand. The question is how do we motivate consumers to spend and how do we make UK products and services attractive in global markets. The car trade-in scheme within a lower VAT environment delivered more consumer value with the additional benefits of safety and environmental gains. A closer examination of value within our existing trade relationships could open up export opportunities, whilst also preventing issues like the Bombardier fiasco.
Tony Claringbould, Winchester, Hampshire
Reviewing the decision on train manufacture for Crossrail was a good start. We should pay exactly the same attention to EU competition regulations as the French do... none.
Chris Pearce, Kings Heath, Birmingham
The increase in engineering and science programmes on the television and the increase in students studying hard subjects at university leads one to feel that the change in the nation's view of engineering and manufacturing is starting. A low exchange rate will help in making exports more competitive. It will also make imports more expensive, leading to opportunities for entrepreneurs to start businesses based on import substitution. Big infrastructure projects such as the construction of a railway from London to Birmingham could help. The government has a big role to play in ensuring that there is enough constant power for industry. There have been numerous warnings of power shortages and the government is still sitting on its hands.
Ted Stone, Kenilworth, Warwickshire
We have the best engineers in the world and consequently we make some of the best products. Tax incentives or interest-free government loans, for small and medium-sized companies to invest in expanding UK-based manufacture for a UK market, rather than concentrating totally on the import/export mix, must be the answer. What is the point in putting your own house in order if your economy is based on everyone else's?
Thomas Doyle, Sleaford, Lincolnshire
It has to be attacked on a number of fronts, including tax breaks and incentives to manufacture in the UK. A banking system that will provide funds at more than competitive rates such as other countries provide. Encourage students to enter manufacturing. Start to change the culture towards engineering. Make a move to change the attitude to an engineering career in the UK. A long journey, but every step is a step in the right direction.
Name and address supplied
There is a race to the bottom with governments cutting spending and banks limiting the supply of lending. The government is just crossing its fingers that other countries are less successful at their cuts and buy goods from us. Internally generated growth isn't possible because the government has cut up their credit card and the population are voluntarily cutting up theirs.
Tom Ward, Huddersfield, West Yorkshire
The government could lay down some seed corn and invest in high-quality technical training and education, like Germany, to profit from the new advancing technologies and research when the economic climate changes. Short-term bottom-line accounting never works for the economy at large.
James Paterson, Chester
Historically, the economies that have recovered quickest out of recession have been those that controlled their internal investment streams plus utilised public funds to invest in infrastructure. Look again at the world in the 1930s and learn by history.
Ian Weslake-Hill, Cardiff
It has been said that anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist. We need to agree what "growth" means in a national context, then adopt policies that leave a sustainable legacy to future generations.
Clive Renton, Chippenham, Wiltshire
Short-term actions to create jobs: Remove or reduce corporation tax payable by manufacturing and engineering companies. Ensure smaller companies have readily available, affordable loans to fund material procurement and production overheads. Medium-term action to sustain jobs: Free manufacturing companies from the EU regulation burden by renegotiating UK terms of membership.
Ted Boller, Halesowen, West Midlands
The government will not go back on the financial deficit reduction course they have gone down as this is their defining policy. In terms of creating growth, the UK could look at history. In the 1930s we built and built and got the unemployed masses on their feet. The problem is this is dependent on us getting rid of our archaic planning laws which prevent growth.
Paul Saunders, Sutton, London
The spending and defence cuts are too hard and too fast. The government should look after its people by getting the economy moving again, especially manufacturing. The reliance on financial services has proved false. Make the banks lend to business at reasonable rates and promote infrastructure projects, housing stock, alternative energy, nuclear.
Chris Jones, Hilton, Derby
Get the banks to supply money to the engineering and manufacturing sectors where appropriate and provide an initiative to ensure work does not unnecessarily go out of the country due to any European legislative red tape.
Tomny Bielowiecki, Southend-on-Sea, Essex
Economies can't keep on growing indefinitely in a finite world, so maybe we're near to the limit as regards expansion of the economy overall. However I believe that rebalancing is needed, towards engineering and manufacturing in particular. This will need a long-term view from the government, a lot of investment and also require a shift in UK business culture.
Craig Sevant, Altrincham, Cheshire
Profitable financial institutions should be forced to provide long-term low-interest loans to entrepreneurs to boost investment in innovative, high-value product manufacturing in the UK. The philosophy that a return on manufacturing investment must be made in one year is shortsighted and should be reversed.
Tom Lapworth, Wigan, Lancashire
- Looking for your next role in engineering? Visit our jobs board.
- Share your Soundbite with us by commenting below.
