The Government launched their new Manufacturing Strategy in September last year. It focuses on what the sector needs for success in the long-term—including seizing the opportunities of the low carbon economy, supporting skills, realising overseas opportunities, and improving the perception and understanding of manufacturing.
It builds on existing areas of support such as R and D tax credits, the Technology Programme, and the Manufacturing Advisory Service (MAS). MAS is monitoring the situation for small manufacturing companies and responding flexibly with suitable advice to help companies. We are also piloting increased support for MAS in the west midlands.
The Government are also taking steps to help businesses through the current economic downturn to boost capital and liquidity in the market. Key measures include the reduction in VAT, the introduction of a new Enterprise Finance Guarantee to support up to £1.3 billion of bank lending, a separate £10 billion guarantee facility to support further working capital bank lending, a £75 million Capital for Enterprise Fund to convert businesses' debt into equity, and £25 million of regional funds.
In the longer term, we are ensuring that the policies within the Manufacturing Strategy work to bolster UK manufacturing and deliver the foundations of 21st Century success such as world-leading R and D and a highly skilled work force.