2011.10.1706:24:00UTC+00EEF Urges U.K. Chancellor To Address Growth Deficit

British Chancellor George Osborne should take immediate measures to tackle the deteriorating economic outlook and plummeting confidence, manufacturers group Engineering Employers Federation (EEF) said.

In a submission to the government before Chancellor gives his autumn statement on November 29, the manufacturers group urged the government to get growth strategy back on the track. The lobby demands timely and targeted measures to boost investment and growth.

The EEF says the failure to act now will only make the future challenges even bigger and risks undermining the hard-won fiscal credibility. According to EEF, reducing tax burden and regulations are the biggest priorities.

The lobby urged specifically to introduce 100 percent first-year capital allowances for a time limited period of two years and reform of the R&D Tax credit to make it more effective at boosting investment.

Further, it said the government should extend Business Growth Fund for companies between GBP 5 million and GBP 50 million to cover debt as well as equity.