CBI council for manufacturers ‘could cloud consistent message’ delivered to Cabinet

A NEW body being set up by the CBI and intended to support Britain’s manufacturing industry could damage the sector’s prospects, say industry sources.

Business lobby group the CBI has established a “manufacturing council” to support the sector, which it said accounts for just 10pc of the UK economy but represents two thirds of the country’s spending on R&D.

Consisting of chief executives, the CBI said the council’s core efforts would be pushing skills needed by the sector; helping get R&D spending to 3pc of national GDP; working to achieve a Brexit deal that manufacturers can work with; and creating an industrial strategy that supports productivity.

However, the creation of the new body could cause confusion, with different groups within the sector duplicating work or even giving contradictory messages on what manufacturers want.

Sources close to the Government noted that while Greg Clark, the Business Secretary, holds weekly round table meetings with all the major business lobby groups – the CBI, manufacturers’ association EEF, Institute of Directors (IOD), Federation of Small Businesses (FSB), British Chambers of Commerce (BCC) and British Retail Consortium (BRC) – the formation of the new council could cause confusion. “It would be easier if they tried to sing from the same song sheet,” said one Government source. “It makes it easier for Greg to provide a consistent message in Cabinet.”

The sector is primarily represented by trade association EEF, whose membership includes 2,000 manufacturing businesses. A source with knowledge of EEF’S thinking said: “This must look odd to government, who’ve always been critical of business organisations not speaking with one voice.”

The council will be chaired by Tom Crotty, director of chemicals group Ineos, who said: “A vibrant manufacturing sector is essential to the growth of the UK economy. The CBI is the voice of UK business and I am very proud to bring together some of the country’s best manufacturers, both large and small, as we look to grow our vital manufacturing base.”