Industry welcomes Budget measures
22 Mar 2007
The Chemical Industries Association (CIA) has backed the increased spending on science and the increase in the R&D tax allowance in the Budget. However, the group spelt out the need for industry, government and the trade unions to join forces to ensure that the UK continues to train, recruit and retain quality scientists and engineers.
“Increasing the supply of skilled labour through investment in science and chemistry education as well as providing incentives to employers to up-skill their workforce is absolutely critical,” said Steve Elliott, CIA chief executive.
Elliott also underlined the point that industry must play its part, adding, “I urge you to give your full support to the proposed Skills Academy for the chemicals, pharmacy and polymer industries. This is a once in a lifetime opportunity to secure our workforce for the future."
Chemical engineers welcome the Chancellor’s announcement that public investment in science and education will increase, said Dr David Brown, chief executive of the Institution of Chemical Engineers (IChemE).
However, said Brown; “Investment in the UK’s science base must be sustained year-on-year in order to build confidence among the research community and investors. The government must focus on innovation that will improve UK competitiveness and deliver tangible benefits.
The IChemE leader called for a greater proportion of the year-on-year education funding to be devoted to attracting and retaining inspirational science teachers, for both primary and secondary schools.
The Institution also welcomed government measures to support biofuels, Brown commenting: “Biofuels are, and will be, a key part of the energy mix. However, turning this into a reality will require the expertise of chemical and biochemical engineers in ensuring that cultivating crops for biofuels doesn’t compete with resources or land for food production. Otherwise we could end up cutting off our nose to spite our face.”
ACE (the Association for Consultancy and Engineering), likewise, welcomed the increased spending on public facilities, defence and infrastructure from £42bn this year rising to £60bn by 2012. The group represents over 800 consultancy and engineering companies working in the built and natural environment.
“Many of the chancellor's announcements will be welcomed by consultancy and engineering firms, said Nelson Ogunshakin, chief executive of ACE. “Commitments to increase spending in schools, hospitals, security and defence and infrastructure should be good news for our industry as is the announcement that public investment in science will rise from £5bn this year to £6.3bn by 2010-11.”
ACE was also pleased with the chancellor's commitment to international development with the £50m pledge for a 10-country initiative across central Africa to prevent the destruction of the rain forest and also the planned £800m for the Environmental Transformation Fund.
The engineers group was also encouraged by the government’s vows to turn the spotlight on sustainability. Ogunshakin commented: “ACE welcomes the exemption from stamp duty of all new zero-carbon homes up to £500,000 and the pledge to fund grants of up to £4,000 to pensioners for home insulation."
However, the organisation voiced concerns over the decision to undertake a £6bn sale of the student loan book in light of the recruitment and retention issues that are high on the agenda within the industry.
“If this leads to a harsher repayment regime for graduates it could make it even harder to attract young people into engineering. Recruitment and retention is a key challenge for our sector and although we welcome the Budget's commitment to providing a training wage for 60,000 16-17 year olds, we hope that the student loan book sell-off will not make that challenge even harder,” explained the ACE leader.
