Two new government departments should be created, to overcome a confusing and unsustainable division of responsibility be-tween the Department of Trade and Industry and the Treasury for supporting industry and promoting economic growth.

The EEF manufacturers' body says current Whitehall structures are undermining attempts to improve British productivity and raise competitiveness. With the future of the DTI in question, its report calls for an economics ministry focused on productivity, and a separate infrastructure department with responsibility for energy, transport and planning.