'Urgent measures' needed to halt manufacturing slump

Date: 10th March 2009

Urgent measures are needed from the government to halt Britain's manufacturing slump, it has been claimed.

Official data from the Office for National Statistics shows that annual manufacturing output fell by 12.8 per cent in January, marking the biggest yearly drop since 1981.

In response, the British Chambers of Commerce (BCC) has called on the government to help UK firms - such as limited companies - hold onto their skilled employees.

Chief economist at the BCC, David Kern, commented: "The essential balancing of the UK economy towards industry is not yet taking place.

"The critical priority is to ensure that the vital skills base within manufacturing is not lost during the recession."

He added that the loss of manufacturing staff would "cause immediate long-term damage to the economy".

The Chartered Institute of Development recently stated that the government had to provide more support for apprenticeships if British industry was to prosper during the recession.