Manufacturers have been enthusiastic in their response to launch of the government’s long awaited Modern Industrial Strategy, the first such strategy since 2017, hailing it as one of the most important events for British industry in a generation.
Manufacturers have argued that the absence of an industrial strategy has been the UK’s ‘economic Achilles’ heel’. The strategy announced plans to cut manufacturers’ energy costs by up to 25%, invest £275 million in training in key growth industries, and provide £7 billion in additional funding for the British Business Bank to improve access to finance.
The government has also published its Advanced Manufacturing Sector Plan that is to ensure the UK’s advanced manufacturing sector is at the forefront of tackling the ‘challenges of our era’, from decarbonisation to harnessing AI, and be ready to seize new commercial opportunities.
A joint-statement on Monday this week from a wide range of industry groups including Make UK, the Confederation of British Industry and the British Chambers of Commerce, read:”The Industrial Strategy launched today marks a significant step forward and a valuable opportunity for the business community to rally behind a new vision for the UK – boosting confidence, sentiment, and enthusiasm for investment.
“From start-ups and small businesses to large corporates, businesses need a more attractive, stable environment that enables faster, easier, and more certain investment decisions. We welcome the government’s engagement with businesses across the UK. Much of what we’ve shared has been heard and reflected in this strategy. While there’s more to do, we are ready to support the next steps.
“We encourage businesses nationwide to get behind this strategy and champion the UK as the best place to live, work, invest, and do business.”
The Sector Plan’s ambition is to nearly double annual business investment in the sector, giving UK firms an edge in 6 advanced manufacturing industries of the future which are advanced materials, aerospace, agri-tech, automotive, batteries and space.
Make UK CEO Stephen Phipson said: “Today is one of the most important days for British industry in a generation. In launching the modern industrial strategy white paper, Jonathan Reynolds has demonstrated the Government’s commitment to honour its promises and tackle the major structural problems that have blighted UK manufacturing for so long and we congratulate him for doing so.
“Make UK has led the campaign for a new industrial strategy for many years, highlighting the three major challenges that were diminishing our competitiveness, hampering growth and frustrating productivity gains: a skills crisis, crippling energy costs and, an inability to access capital for new British innovators.
“The Government has listened and the Secretary of State has acted decisively with a joined up strategy which reflects a wider commitment from the Prime Minister and Cabinet alike.”
Lord Richard Harrington, Make UK Chair, said:”Today’s Plan sets out how Government will work with industry to help our businesses become more resilient, boost exports and upskill the people it needs for the future. The focus on place-based initiatives through Advanced Manufacturing clusters will ensure that more regions across the country will benefit from the jobs and wealth creation that manufacturers deliver for their regions.”
Verity Davidge, Director of Policy at Make UK, said:“We know that the foundation of any successful Industrial Strategy is people. Make UK strongly welcomes the Government’s investment into engineering, and its commitment to reducing the skills gap in our sector. In supporting provision for both recruitment and upskilling, this is a promising start to filling the nearly 50,000 existing vacancies in manufacturing.
“Looking ahead, it is critical that Government develops a long-term vision for skills in the sector, ensuring that all contributions made by employers can be used by employers for both the Growth and Skills Levy and the Immigration Skills Charge, and delivering the crucial funding reforms to ensure the training market is equipped and funded to train the next generation of manufacturers.”
Make UK’s Chief Economist Seamus Nevin welcomed the news of funding for the British Business Bank. He said:”Access to external finance is one of the biggest barriers to growth for small and medium-sized enterprises (SMEs). SMEs make up 99% of the UK economy, so this longstanding challenge has significantly held back the UK economy.
“Today the government has taken decisive action. This announcement of new incentives, backed by an additional £7 billion in funding for the British Business Bank, marks a major step forward to support more UK businesses to invest, scale up, and seize new market opportunities – unlocking the full potential of innovative manufacturing companies to transform and grow.”