buglerbilly
25-03-10, 04:04 PM
Budget Reaction from UK Aerospace, Defence & Security Industry
(Source: ASD; issued March 24, 2010)
A|D|S, the trade organisation representing the UK’s world-leading, high-technology, high-skilled AeroSpace, Defence and Security industries today (Wednesday) commented on the Chancellor of the Exchequer Alistair Darling’s Budget speech to the House of Commons.
Ian Godden, Chairman of A|D|S, said:
“We welcome the Chancellor’s focus on recovering from recession and investing in our industrial future, especially his focus on encouraging exports, supporting trade and discouraging protectionism as well as his warm words for advanced manufacturing, especially aerospace. His recognition that economic growth is the key to our recovery and reducing borrowing is encouraging and the sectors that we represent can deliver the goods in this regard.
“The British aerospace, defence and security sectors are number one in Europe and second only to the US globally. They can deliver on the Chancellor’s aim to generate long-term prosperity for Britain. There is considerable room for growth in the export markets for these successful sectors that would contribute to the recovery from recession and deliver a sustainable industrial future with many additional jobs. For example a recent study by Oxford Economics has shown that an additional Government investment of £100m in defence would deliver an output of £227m. That investment would also bring about an estimated additional 1,885 jobs.
“We will shortly be publishing manifestos for each of the four world-leading sectors that we represent to demonstrate to the political parties in the run-up to the General Election what we can deliver for the country in terms of jobs and added value to the economy providing current and future Governments deliver the correct climate in which they can prosper.”
On the additional funding for Universities Mr Godden commented:
“The £270 million additional funding for key subjects in Universities for 2010/11 is very welcome. Science, technology, engineering and mathematics are the subjects that will provide the foundation for the future economic success of the UK. Aerospace, defence and security already collectively employ around 500,000 people across all regions of the country and generate £60 billion per year to the UK economy. These sectors depend on skilled young people leaving the education system and entering the workplace ready to maintain Britain’s global leadership in these sectors as older workers retire. We hope that this funding will be extended for subsequent years rather than be a one-off.”
On support for small and medium sized enterprises (SMEs) Mr Godden said:
“Small and medium sized businesses are the lifeblood of the economy and this is no less true in the aerospace, defence and security sectors. Therefore, as the national voice for aerospace, defence and security SMEs, we welcome the investment support for SMEs that the Chancellor mentioned in his speech. Small firms are the source of innovation that drives the UK’s success in these areas. For example, in defence alone the UK has more SMEs than France, Germany, Italy, Spain and Norway combined and this provides the agility and innovation that has secured for Britain the role of Europe’s leader in these sectors. Helping small firms to invest in plant and machinery plus increasing Capital Gains tax relief are welcome and additional investment in skills will help smaller firms in particular.”
On defence Mr Godden continued:
“The defence budget is in urgent need of attention, notwithstanding the additional and separate £4 billion from the Treasury reserve for operations in Afghanistan for next year. It was disappointing that nothing specific was announced to address this funding gap.
“Instead of seeking to further cut or reallocate resources from one vital project to another it is time to recognise that defence has made its contribution to Government savings over the last two decades and that other departments must now have their budgets placed under similar pressure if future spending cuts are required to reduce the public sector deficit.
“As the Public Accounts Committee confirmed yesterday there is a hole in the Ministry of Defence budget. A large part of this is because defence has been consistently underfunded over a long period of time despite our armed forces being involved in two intense conflicts. While other departmental budgets have continued to rise, defence has been under constant pressure and scrutiny despite the operational demands on the MoD’s funds.”
On proposals for a £2 billion ‘green’ investment bank Mr Godden said:
“We look forward to aerospace projects being able to access this fund. An aircraft today produces 70 per cent less CO2 than its equivalent did 50 years ago. Furthermore, through the Sustainable Aviation carbon dioxide roadmap we aim to meet the predicted threefold rise in passenger demand in the UK to 2050 while simultaneously reducing CO2 emissions back to 2000 levels. As aerospace supports the aim of moving to a low carbon economy it is only natural that our sector should be eligible for support from this fund. With the industry employing 100,000 people and generating £20 billion per year to the UK economy such assistance will see a good return on investment and deliver the cleaner, greener aircraft that the highly-competitive multi-trillion dollar global market demands.”
BACKGROUND NOTES:
1. This is a reaction to the Budget speech itself. Further analysis of the accompanying Budget Report itself will follow as appropriate in due course.
2. The Oxford Economics report cited above can be found at http://www.defencematters.co.uk/news/DIC-reports.aspx.
3. The Sustainable Aviation CO2 Roadmap can be found at http://tinyurl.com/saco2.
A|D|S is the trade organisation advancing UK AeroSpace, Defence and Security industries with Farnborough International Limited as a wholly-owned subsidiary. A|D|S also encompasses the British Aviation Group (BAG). It is formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC).
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(Source: ASD; issued March 24, 2010)
A|D|S, the trade organisation representing the UK’s world-leading, high-technology, high-skilled AeroSpace, Defence and Security industries today (Wednesday) commented on the Chancellor of the Exchequer Alistair Darling’s Budget speech to the House of Commons.
Ian Godden, Chairman of A|D|S, said:
“We welcome the Chancellor’s focus on recovering from recession and investing in our industrial future, especially his focus on encouraging exports, supporting trade and discouraging protectionism as well as his warm words for advanced manufacturing, especially aerospace. His recognition that economic growth is the key to our recovery and reducing borrowing is encouraging and the sectors that we represent can deliver the goods in this regard.
“The British aerospace, defence and security sectors are number one in Europe and second only to the US globally. They can deliver on the Chancellor’s aim to generate long-term prosperity for Britain. There is considerable room for growth in the export markets for these successful sectors that would contribute to the recovery from recession and deliver a sustainable industrial future with many additional jobs. For example a recent study by Oxford Economics has shown that an additional Government investment of £100m in defence would deliver an output of £227m. That investment would also bring about an estimated additional 1,885 jobs.
“We will shortly be publishing manifestos for each of the four world-leading sectors that we represent to demonstrate to the political parties in the run-up to the General Election what we can deliver for the country in terms of jobs and added value to the economy providing current and future Governments deliver the correct climate in which they can prosper.”
On the additional funding for Universities Mr Godden commented:
“The £270 million additional funding for key subjects in Universities for 2010/11 is very welcome. Science, technology, engineering and mathematics are the subjects that will provide the foundation for the future economic success of the UK. Aerospace, defence and security already collectively employ around 500,000 people across all regions of the country and generate £60 billion per year to the UK economy. These sectors depend on skilled young people leaving the education system and entering the workplace ready to maintain Britain’s global leadership in these sectors as older workers retire. We hope that this funding will be extended for subsequent years rather than be a one-off.”
On support for small and medium sized enterprises (SMEs) Mr Godden said:
“Small and medium sized businesses are the lifeblood of the economy and this is no less true in the aerospace, defence and security sectors. Therefore, as the national voice for aerospace, defence and security SMEs, we welcome the investment support for SMEs that the Chancellor mentioned in his speech. Small firms are the source of innovation that drives the UK’s success in these areas. For example, in defence alone the UK has more SMEs than France, Germany, Italy, Spain and Norway combined and this provides the agility and innovation that has secured for Britain the role of Europe’s leader in these sectors. Helping small firms to invest in plant and machinery plus increasing Capital Gains tax relief are welcome and additional investment in skills will help smaller firms in particular.”
On defence Mr Godden continued:
“The defence budget is in urgent need of attention, notwithstanding the additional and separate £4 billion from the Treasury reserve for operations in Afghanistan for next year. It was disappointing that nothing specific was announced to address this funding gap.
“Instead of seeking to further cut or reallocate resources from one vital project to another it is time to recognise that defence has made its contribution to Government savings over the last two decades and that other departments must now have their budgets placed under similar pressure if future spending cuts are required to reduce the public sector deficit.
“As the Public Accounts Committee confirmed yesterday there is a hole in the Ministry of Defence budget. A large part of this is because defence has been consistently underfunded over a long period of time despite our armed forces being involved in two intense conflicts. While other departmental budgets have continued to rise, defence has been under constant pressure and scrutiny despite the operational demands on the MoD’s funds.”
On proposals for a £2 billion ‘green’ investment bank Mr Godden said:
“We look forward to aerospace projects being able to access this fund. An aircraft today produces 70 per cent less CO2 than its equivalent did 50 years ago. Furthermore, through the Sustainable Aviation carbon dioxide roadmap we aim to meet the predicted threefold rise in passenger demand in the UK to 2050 while simultaneously reducing CO2 emissions back to 2000 levels. As aerospace supports the aim of moving to a low carbon economy it is only natural that our sector should be eligible for support from this fund. With the industry employing 100,000 people and generating £20 billion per year to the UK economy such assistance will see a good return on investment and deliver the cleaner, greener aircraft that the highly-competitive multi-trillion dollar global market demands.”
BACKGROUND NOTES:
1. This is a reaction to the Budget speech itself. Further analysis of the accompanying Budget Report itself will follow as appropriate in due course.
2. The Oxford Economics report cited above can be found at http://www.defencematters.co.uk/news/DIC-reports.aspx.
3. The Sustainable Aviation CO2 Roadmap can be found at http://tinyurl.com/saco2.
A|D|S is the trade organisation advancing UK AeroSpace, Defence and Security industries with Farnborough International Limited as a wholly-owned subsidiary. A|D|S also encompasses the British Aviation Group (BAG). It is formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC).
-ends-