HISTORIC PRESS RELEASE : Chancellor congratulates motor industry on contribution to UK economy [May 2004]
The press release issued by HM Treasury on 26 May 2004.
The Chancellor of the Exchequer, the Rt Hon Gordon Brown MP, congratulated the UK’s automotive industry on the “vital contribution” it makes to the UK’s economy. The Chancellor paid tribute to the industry during a visit to the Sunday Times Motor Show Live at the NEC in Birmingham today.
The Chancellor said:
“I’m delighted to be visiting Motor Show Live to see at first hand what a great job the UK’s automotive sector is doing and pay tribute to the vital contribution it makes to our national economy.
“And I can tell you today that the ten year science and innovation plan we will announce in the next few weeks will be a major boost for manufacturing strength. Building on the Manufacturing Advisory Service, capital allowances, corporation tax cuts and the Research and Development tax credit, we will seek to make Britain the best location for new investment and innovation. And we will raise the level of science funding as a share of national income in the next spending review period.
“The motor industry has risen to the challenges of globalisation and international competition and not just survived, but thrived.
“The UK automotive manufacturing sector contributes some £8.5 billion to the UK economy and accounts for almost 10% of total UK exports of goods.
“Almost 250,000 people across the country are employed in the manufacture of vehicles and components in some 3,200 businesses. Another 544,000 work in the automotive retail sector.
“And the motor industry makes a major contribution not just to employment and exports, but to innovation in our economy – investing £1.2 billion a year in research and development – and to training and skills as well with over 20,000 thousand young apprenticeships.
“The motor industry has won for Britain huge amounts of inward investment with some of the world’s leading manufacturers choosing to locate new plants in the UK. 68% of the vehicles produced in the UK are exported. And companies in the supply chain trade with customers and suppliers right around Europe.
“That is why our commitment as a Government is that we will make the case for our membership of the European Union – which accounts for 55 per cent of the UK’s trade – for the advantages it brings to Britain, and for Britain being a leader in an enlarged Europe.
“The issue is making the most of our membership in Britain’s interest against those who would, for dogmatic reasons, detach Britain from Europe and put at risk many of the three million jobs that arise from our trade with Europe.
“I am particularly pleased to be able to pay tribute to the contribution the automotive sector makes to our country here in the West Midlands.
“40% of the UK’s income generated by the motor industry is generated here in the West Midlands. The automotive sector provides jobs for around 65,000 employees in the region with many more jobs provided in the supply chain.
“And the successes we celebrate here have helped create 80,000 jobs in the West Midlands alone since 1997.”
