Government promises more money to help raise UK’s ailing productivity rate

The Government is to inject an extra £20m into manufacturing to help
struggling employers.

Trade and Industry Secretary Patricia Hewitt announced that the additional
funds would be split between the DTI’s Partnership Fund, which promotes closer
working between employers and employees, and projects to improve supply chains
and productivity.

Hewitt said the £20m was the result of recommendations from the TUC and the
CBI, and would be used to spread best practice.

The establishment of four more centres of manufacturing excellence was also
announced at a "manufacturing summit" in Birmingham to identify the
spread of best practice in the East Midlands, South West, North East and
Yorkshire and Humberside.

This additional £20m over the next two years builds on the £20m already
committed to the promotion of best practice and the £5m promised to the
Partnership Fund, bringing the total being spent in this area to £45m.

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Speaking in Birmingham, Hewitt said, "Where business and unions agree
on good ideas to raise productivity then the Government should look to back
them."

www.dti.gov.uk