Cuts must take into account need for continued investment in engineering and technology

24 May 2010

The Institution of Engineering and Technology (IET) has welcomed plans to invest in apprenticeships, which are vital for the future of the UK's engineering sector, but urges the government to consider carefully the effects that cuts to the Regional Development Agencies (RDAs) could have on the UK’s prospects for growth.

"Engineering the Future", the manifesto for the engineering profession, called for more funding for apprenticeships, particularly in small and medium sized enterprises, with 71% of the current skills-gap occurring at technician level. Today’s announcement of a further £150 million investment, to fund 50,000 new apprenticeship places, focused on small and medium sized enterprises, is to be welcomed.

Less positive news, which is of particular concern to the IET, is the joint announcement from HM Treasury and the Department of Business Innovation and Skills, of £200 million in cuts from the universities’ budget. Of particular note, is that that the number of places available through the Universities’ modernisation scheme will be halved, from 20,000 to 10,000. Most places available through the modernisation fund were to go to strategically important science and engineering subjects, crucial in populating the industries on which sustained economic growth depends.

Reduced funding for RDAs is also of concern to the IET; rationalisation needs to be managed carefully, to avoid significantly damaging the UK’s innovation infrastructure, which is vital in sustaining recent economic growth. Many RDA programmes contribute to development of growth industries: creation of systems to capture carbon dioxide from power stations; or enabling new low-carbon cars to be made in the UK are two examples. RDAs play an important role in developing science and innovation parks in many parts of the country where high tech SMEs can flourish and grow.

Paul Davies, head of policy at the IET, said:

"We're pleased the government is investing in apprenticeships but this must be matched with the retention of innovation funding. Cutting innovation funding is a false economy, as competing in a globalised engineering and technology market means our innovators need to be supported by government at all tiers.

"Much top class research takes place in the UK and we need to get better at translating that research into economic advantage and into new products and services. Doing that requires continued collaboration and investment from the private sector and from the government. This cut in funding for RDAs must be considered carefully before it is implemented and it certainly should not be the precursor to further cuts in innovation."