How can the govt support manufacturing in the UK? Watch

yolostudent
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e.g. what can they do, like polices or rules they could put in place? i have no idea so help !
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SotonianOne
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Analyse differences between the UK and other countries in the manufacturing industries

Effectively this goes down to competitiveness - how competitive (prices) your goods are compared to other nations. Lower prices may be reached through lower costs of production which may include lowering labour costs (lowering minimum wage), increasing productivity (investing capital goods) and a lower exchange rate (lower exchange rates make your product cheaper in other countries)

It's a subject really open to interpretation, if you focus mainly on productivity, talk about current issues in the UK with productivity (lowest in western eu etc.) and explain how it can be fixed (incentives to invest by tax breaks / allowances on profit withholding) or building infrastructure etc. it should be just about enough

(I read your other thread, this mainly answers your last question and the theory behind it
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Mike_123
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(Original post by yolostudent)
e.g. what can they do, like polices or rules they could put in place? i have no idea so help !
Pretty much what the above said - although note that it is not realistic for the UK to depreciate its currency, as it runs a floating exchange rate system!

Also, subsidising manufacturing in the UK may be seen as anti-competitive in accordance to EU law and other non-EU trading partners may retaliate also (additionally, subsidising industry creates inefficiency and a fiscal deficit)

So the best way to improve LONG RUN competitiveness in the UK is to improve productivity. This can be done effectively through education and training schemes, for example.
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