Government support for home-grown manufacturing has been called into question after ministers awarded German giant Siemens a £1.4bn rail contract. Jez Davison reports.

IN May 2010, manufacturing appeared to be back in vogue among Britain’s brand new army of policymakers.

The new Coalition Government had stepped into power promising an economic recovery led by good old-fashioned manufacturing and export-powered trade.

David Cameron and Business Secretary Vince Cable both pledged to create home-grown jobs and an environment where manufacturers could flourish.

One year on, the move appears to have backfired. The UK economy flat-lined in the half year to March and second quarter GDP figures out this month are expected to show anaemic growth at best.

In that context, the recent decision by ministers to award a lucrative rail contract to German giant Siemens was always likely to cause uproar.

The move cost 1,400 workers their jobs at rival bidder Bombardier in Derby and sparked claims that the Government has reneged on its commitment to support UK manufacturing.

Stillington engineering firm Darchem, which has worked with Bombardier and other major blue-chips, said the Government had done little to help manufacturers during the first year of its premiership.

Darchem managing director Graham Payne said: “In France and Germany, funding is very much geared towards creating and keeping jobs in the country.

“The UK Government is fixated by the green agenda and wants to protect itself from any criticism from the European Commission.

“I understand the need to reduce carbon emissions but we have to do it in a way that doesn’t hurt industry.”

Uncertainty, he said, was damaging industry and new figures appear to back up his claim.

Weak UK demand, the global economic slowdown and the Eurozone debt crisis have knocked confidence levels among manufacturers to a two-year low, according to accountancy firm BDO.