Insider Media Limited

Midlands businesses are strongly in favour of introducing government measures to positively discriminate in favour of high-end growth sectors. According to responses to an Insider poll, leading business figures from the Midlands agree with the idea of favouring sectors including manufacturing as a way of boosting the UK's recovery.

As poor statistics for June's manufacturing output levels were revealed, Jonathan Dudley from accountancy firm Crowe Clark Whitehill said positive discrimination would "re-sow the infrastructural seeds of engineering expertise" in the Midlands.

In the latest issue of Midlands Business Insider, ten business figures from the region were asked whether positive discrimination towards certain high-growth sectors should be a measure considered by the government. Seven said 'yes'; two said 'no' and one 'maybe'.

Dudley gave a resounding 'yes', stating that the UK had limited natural resources and in an 'electronic environment', could no longer rely on the City.

He said: "Going forward, what they do can be delivered from anywhere in the world. Would the average financier prefer to be on Coco Beach or Canary Wharf? And traditionally the way we have done that is by innovative and ground-breaking engineering. Positive discrimination by the government to resow the infrastructural seeds of engineering expertise will bear fruit for our children and our children's children."

David Martin from accountancy firm PwC agreed that the measure had potential to be a success.

"The government must support those companies that continue to innovate and invest in new products and new markets. In turn, businesses must hold their nerve if they are to secure their future in an increasingly competitive global market," he said.

However, Warwick Manufacturing Group's Lord Kumar Bhattacharra disagreed, stating that "anyone who gets behind growth should be encouraged" regardless of sector.

He said: "We have to work in a highly competitive, open and global environment. It is a perception that growth will only come from advanced manufacturing but that is not always the case. High- and low-end can often be subjective depending on the sector. So it is not always straight forward.

"Growth is vitally important for this country if we are to create the work and jobs that are needed, advanced manufacturing is crucial to this, but I don’t believe positive discrimination will help the cause."

Their comments came as a further slump in the UK's manufacturing market was revealed last week (9 August).

British factory output, which does not include utilities or oil and gas extraction, fell by 0.4 per cent in June, according to figures from the Office for National Statistics.

Car production suffered the biggest fall, of 1.7 per cent, while chemicals, and paper and publishing also shrank in June. However, these were partly offset by a 4.1 per cent increase in the textile and leather clothing industry.

The September issue of Midlands Business Insider is out now.