Call for consensus on deficit

EEF has urged all political parties to come to agreement as a matter of urgency to remove political uncertainty and reassure markets and business that it has a plan to reduce the deficit.

The manufacturers organisation said the new government, regardless of its political composition, must set out a clear and credible plan for how it will tackle the deficit; give assurances that tax reform will be a priority to help rebalance the economy and promote investment; and introduce an energy bill outlining market reforms and a clear commitment to nuclear power.

‘The clock is now ticking on action to get our economy going again and tackle the crisis in our public finances,’ said Terry Scuoler, EEF chief executive. ‘Manufacturers will fear that a political impasse and a failure by all parties to come together will stall this and risk damaging our economy.”

‘We need to see political maturity and courage to face up to the tough decisions that are necessary. Business and the markets will be looking for immediate and decisive action. This must include a clear plan for how and when we will reduce the public deficit and the modernisation of our tax system to rebalance the economy and promote investment.