7. What fiscal steps he has taken to encourage manufacturing in the UK. (903714)

The Government are committed to strong and sustainable economic growth that is balanced across the economy. The manufacturing sector, as my right hon. Friend the Chancellor has already said, is a vital part of it. In the recent Budget, the Government announced a package of measures to reduce energy bills for manufacturers and improve their competitiveness, for example, by capping the carbon price floor. Earlier this month, the Government announced a £100 million extension to the advanced manufacturing supply chain initiative.

I echo the Chancellor’s welcome to the excellent GDP numbers. Despite the fact that the Labour party continues to wallow in its own failed predictions of doom, manufacturing has actually increased by 1.3%. That is very obvious in my constituency. With the long-term economic plan in mind, what more can we do to promote British manufacturing?

I thank my hon. Friend for that question. I understand that he established in his constituency the annual festival of manufacturing and engineering, and that the next event will be held in November 2014. As he said, this morning’s GDP figures show the strongest annual performance for manufacturing for three years—up 3.4%. He asked what more the Government can do. In the Budget last month we announced plans to double UK Export Finance’s direct lending programme and further to increase our support for apprenticeships.

Has the Chancellor, in his long-term plans for the economy, looked at the impact of any increase in interest rates on businesses, and in particular on manufacturing?

First, it is welcome to hear Opposition Members talking about this Government’s long-term economic plan. Long may they continue to do so, but I am not going to take lessons on manufacturing from them. Manufacturing halved as a share of the economy under the previous Labour Government. This Government are on the side of manufacturers and small businesses up and down the country.

Today’s GDP figures are particularly welcome and the contribution by manufacturing is especially impressive. Many manufacturers are investing heavily in skills, but get frustrated that their skilled employees are poached by others who are not making that investment. What measures can the Minister suggest to help to share the burden of investment in skills?

I thank the right hon. Gentleman for that question. He is absolutely right. Skills is an issue mentioned, I am sure, to all Members from all parts of the House every time they visit their local businesses. We have invested in apprenticeships, so we are growing a skilled work force. In 2012-13, the Government supported 66,000 apprenticeship starts in engineering and manufacturing technologies. He is right that we have to invest in skills all the way through the work force and all the way through their working life, but we are making a great start with apprenticeships.