The chancellor has declared a "war" to drive up economic productivity with particular focus on the manufacturing sector.

Speaking to the Amicus trade union conference yesterday, Gordon Brown said: "Let us be clear about the future: the countries that succeed most in the future will be internationalists, not insular - in our case playing a proper role in Europe - and will not be those who compete on low wages but compete on high skills, high technology and high value added."

Forum Response: British Retail Consortium

Bill Moyes, director general of the British Retail Consortium, told ePolitix.com: "Whilst we welcome the chancellors' commitment to boosting the UK's productivity through public investment, the BRC has strong concerns about the negative impact on productivity of increases in national insurance, stamp duty, and the new land development tax.

"The increase in national insurance alone could mean the loss of more than 10,000 jobs within the sector, whilst the proposed land development tax will jeopardise future new stores and redevelopment.

"If government really want to boost the productivity of UK plc they should combine public investment with a sensible attitude towards taxation and regulation."

Forum Response: Institute of Directors

Ruth Lea, head of the policy unit at the IoD, told ePolitix.com: "We support any policies that will improve productivity. The development of a proper vocational pathway in secondary schools would undoubtedly be a step in the right direction. One of British manufacturing's main problems is intermediate skills shortages."