Lord Patten – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Lord Patten on 2015-12-21.

To ask Her Majesty’s Government how many manufacturing companies in the UK employing more than 500 people are foreign-owned; and what is their assessment of the implications of such ownership for the development of indigenous management.

Baroness Neville-Rolfe

Draft Answer

There are 320 manufacturing enterprises in the UK with more than 500 employees that are foreign owned (i.e. have over 50% foreign control). This is 61% of manufacturing companies with over 500 employees. The UK welcomes foreign direct investment and enjoys the benefits of jobs and skills that it brings and UK manufacturing continues to be globally attractive and competitive. However, the Government is not aware of any evidence which indicates that foreign-owned companies treat UK management any differently to British-owned companies.

We are taking a number of steps to increase indigenous management skills and capability. Apprenticeships standards are now available or being developed in senior level and management occupations. These include degree level qualifications and cover such areas as Manufacturing Engineer, Chartered Manager and Project Manager.

The apprenticeships levy will come into effect from April 2017. It will apply to all UK employers with a pay bill in excess of £3 million and incentivise them to train their apprentices in the technical and professional skills their businesses need, including quality management and leadership.

The Government is also supporting work being undertaken by senior industry leaders to examine ways to increase manufacturing productivity in the UK, which is part of the business-led action referenced in the Government’s Productivity Plan published in July 2015. This work will look at how indigenous performance could be improved in areas such as leadership, management and employee engagement, and will also consider what steps could be taken to develop a stronger culture that embraces innovation and new technologies such as digitisation. We will consider the findings when they are produced by industry later in 2016.