Feb22017

BCC comments on Bank of England inflation report

British Chambers of Commerce
image_pdfimage_print

Commenting on the Bank of England inflation report and interest rate decision published on ‘Super Thursday’, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“The Bank of England’s latest forecasts paint a much more optimistic picture of the UK’s growth prospects compared to their previous post-EU referendum predictions.  Although the central bank is slightly less concerned over price growth, inflation is still expected to breach the 2% target for a prolonged period. This means that MPC’s attempts to combat rising inflation and support growth is likely to remain a challenging balancing act through the forecast period.

“However, with the Bank of England still expecting below trend growth over the medium term and considerable uncertainty over the impact of Brexit, we predict that the MPC will continue to ‘look through’ the expected rises in inflation and opt for an extended period of monetary stability. As a consequence, we expect that interest rates will remain on hold through 2017.

“With the monetary policy tools at the MPC’s disposal largely exhausted, it is vital that the government uses the upcoming Spring Budget to boost the UK’s long-term growth prospects by doing more to support business investment, including action to tackle the escalating burden of upfront business costs.”

Ends

Notes to editors:

The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. Our Global Business Network connects exporters with nearly 40 markets around the world. For more information, visit: www.britishchambers.org.uk

Media contacts:

Allan Williams – Senior Press Manager

020 7654 5812 / 07920583381

Orla Hennessy – Press and Communications Officer

020 7654 5813 / 07825746812

Feb22017

News story: Defence Secretary hails global outlook of Midlothian naval engineers

MOD
image_pdfimage_print

Sir Michael Fallon visited MacTaggart Scott, who design, build, install and maintain engineering systems for the Royal Navy – the company’s “shop window” – and 40 of the world’s navies, including the US, French, Canadian, Australian and South Korean.

The visit is part of the Defence Secretary’s on-going engagement with Scotland’s industrial base, 10% of which is defence-related, directly supporting 11,000 Scottish jobs with thousands more sustained. During the visit he met with some of the company’s 32 engineering apprentices, which make up nearly 18% of the firm’s industrial workforce.

Defence Secretary Sir Michael Fallon said:

MacTaggart Scott is a terrific example of the benefits that combining innovation, a global outlook and an entrepreneurial spirit can deliver for Scotland as part of the UK.

They are a leading hub of international naval innovative design, manufacture and maintenance and should also be applauded for investing in our young people through their apprenticeship programme.

MacTaggart Scott designed, built and installed the huge lifts that will carry jets and helicopters between the flight decks and hangers on the Royal Navy’s new aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, currently being built in Rosyth. They also design and build helicopter handling systems, and are competing for contracts relating to the new Clyde-built Type 26 on which the first steel will be cut this summer.

Remarkably, the company has been involved in every submarine built for the Royal Navy since 1915, and manufacture and provide support to a range of specialist submarine equipment, including stealth mast raising equipment for periscopes, optronics and communications equipment, sonar handling gear, hydroplane, rudder and ballast tank valves and actuators for submarines across the globe.

Bill Marsh, Managing Director of MacTaggart Scott said:

Our innovative work for the Royal Navy’s surface ships and submarines provides us with a vital shop window which sees half of our £35m turnover come from export.

Our ambition is to design, manufacture and install vital equipment and provide through life product support to every single Royal Navy ship and submarine.

  • MacTaggart Scott is a privately owned engineering company founded in 1898 and employs 350 people, 32 of whom are apprentices.

Defence Budget

  • The UK is investing £178bn in a decade long equipment programme.
  • The UK Defence budget has a “double lock” which ensures that it will rise every year by at least 0.5% annually, above inflation and always exceed 2% of GDP.

UK

  • Trade with the rest of the UK makes up over half of Scotland’s exports, and is four times the value of exports to the rest of the EU.

  • The UK Government is firmly committed to the future of Defence in Scotland and its continued vital role in Defence.

  • Scotland is home to military bases that provide essential capabilities for the Defence of the UK as a whole.

  • By 2020, Scotland will be home to all of the Royal Navy’s submarines, one of the Army’s engagement and resilience Infantry Brigades, one of three RAF fast jet main operating bases and new P8 Poseidon Maritime Patrol Aircraft.