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PRIVACY
Manufacturingopinion

Government needs to rethink decision to scrap MAS

Professor David Bailey says it is a backward decision by the Government to axe the Manufacturing Advisory Service

Closure of MAS could have a grave effect, says Prof Bailey(Image: Andrew Milligan/PA Wire)

There's still a genuine sense of shock in parts of the manufacturing industry that the Business Growth Service, which includes the Manufacturing Advisory Service and the Growth Accelerator programme, is being scrapped.

Business Growth Service (BGS) stats show it has assisted more than 28,000 businesses, helped SMEs raise more than £155 million in finance and that nine in ten firms would recommend it.

Since 2012, the BGS has added £4.8 billion of gross value added and created 110,000 jobs.

The decision came

Insiders at the Manufacturing Advisory Service (MAS) tell me they had been prepared for a budget cut, given the scale of Osborne's cuts to non-protected government departments including BIS, but there had been no warning that MAS would be scrapped completely.

The timing is odd as well. Manufacturing shrank in 2015 and remains well below pre-2008 levels. So much for the 'march of the makers'.

A recent survey by the manufacturers' association EEF found only automotive and chemical firms remained buoyant.

The rest of the manufacturing sector expect output and employment to stagnate, no doubt on the back of a slowdown in China and a lack of orders from continental Europe.