As the UK economy's recovery continues to stall, the Engineering Employers Federation (EEF) has called for government red tape to be reduced in order to support the manufacturing sector. This latest call from the EEF coincides with the news that BAE Systems are cutting 3,000 jobs due to a reduction in production output.
The EEF, which represents 6,000 companies, believes the government needs to reduce burdens on employers, including eliminating unnecessary regulation which reportedly costs firms an extra £11.5 billion annually.
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"With major new measures such as the new national pension savings scheme in the pipeline for next year, the Government needs to set out plans for where it can reduce the burden on employers,” said Steve Radley, Director of Policy at EEF. "It also needs to ensure that any progress at home is not undone by the need to implement expensive and badly-designed directives from Europe.”
In response, a Department for Business spokesman said: "This government is working hard to reduce the burden regulation can have on business costs, including the flow of regulation from Europe."
Meanwhile, defence giant BAE Systems are set to axe 3,000 jobs in the UK as production output of its Typhoon combat jet has slowed significantly. Union leaders have said that the loss in jobs for Britian's biggest manufacturing company would be devastating for the industry. BAE Systems has cut 15,000 jobs worldwide over the past two years in a huge cost-cutting operation.