Government outlines support for suppliers to automotive industry
While the US Senate may have rejected the bail-out of US manufacturers, here in the UK things are quite difference. Suppliers to the automotive industry are being urged by the government to investigate all the schemes intended to help businesses in the current economic climate.
Support for the supply chain was one of the issues raised at the recent meeting of industry leaders with the Secretary of State, Peter Mandelson and Business Minister, Ian Pearson.
In a letter being sent out to vehicle manufacturers for their suppliers, Ian Pearson outlines a number of measures that were recently announced by the Chancellor in the Pre Budget Report. These include:
* A Small Business Finance Scheme to support up to £1 billion of bank lending
* A £1 billion guarantee facility to support bank lending to small exporters
* A £50 million fund to convert businesses’ debt into equity
* A £25 million regional loan transition fund.
The European Investment Bank has also earmarked €15 billion for 2008-2009 for loans to small and medium sized businesses in Europe as part of an overall package of funding.
Last month Skills Secretary John Denham announced that small businesses will be the focus of £350 million of Government funds to help them train their staff. The money will be available to deliver a new package of flexible support to help small businesses get through the tougher economic climate by building the skills and expertise of their workers.
Ian Pearson said:
“With a number of vehicle manufacturers cutting back on production over the next few weeks, it is inevitable that this will have an impact on the supply chain.
“We want to make sure that all their suppliers know that there is help out there whether they’re facing credit constraints or looking to invest in training.
“The automotive sector is a vital part of the UK’s economy and as part of the Government’s commitment to manufacturing, we are determined to maintain the UK as a location of choice for manufacturers”
Skills Secretary John Denham said:
“Small businesses are an important engine of our economy and we must make sure that we support them during tough economic times.
“We are overhauling the training system to make sure that they can get help with training their staff with the very minimum of bureaucracy.
“We know that firms which invest in skills do better than those that don’t, which is why we will be urging small businesses to take up this offer from Government.”
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