Opinion Post – What UK manufacturers need from the UK government

We firmly believe in the power of UK manufacturing and its continued growth over the next few years. However, with Brexit and the general election creating uncertainty, it’s important that the next UK government is prepared to support UK business and ensure that it remains strong.

Innovation is at the heart of UK manufacturing at the moment, and this is key in ensuring that we can continue to produce high-value goods and materials. The current government is committed to innovation, which we discussed in a recent blog. The next government needs to ensure that enough funding is put into innovative projects to encourage the development of technologies and processes that can keep the UK at the top of the global manufacturing pile. It also needs to invest in people, with good training programs and incentives to inspire a new generation of engineers, manufacturers and business owners to propel the industry forward.

Conservative manifesto promises

The Conservative manifesto outlines its plans for a “modern industrial strategy”, with a promise to help young people develop the skills that they need to do highly skilled jobs, such as those in the manufacturing industry. It has a specific focus on innovation, stating that: “Our long-term prosperity depends upon science, technology and innovation. The UK has an outstanding science base and many world-leading tech companies. We now need to go further. Our ambition is that the UK should be the most innovative country in the world.”

As well as an assurance of a commitment to innovation, the manifesto also outlines plans to address the UK’s slow productivity growth, increased investment in services and skills, and supporting small businesses.

It’s important that key industries, like manufacturing, are invested in and this is something that UK companies will be looking for from the next government. The Conservative manifesto says that it will help “old industries find prosperous new life and unlock future opportunities, and new industries to grow.” It recognises the areas in which the UK can lead the world, such as advanced manufacturing in the aero and automotive industries, and it pledges continued support to the oil and gas sector, stating: “We will continue to support the industry and build on the unprecedented support already provided to the oil and gas sector.”

Labour manifesto promises

Labour’s manifesto suggests that “Britain’s manufacturing base has declined” and that it hopes to change this if it forms the next government. It also puts a strong emphasis on innovation, saying that one of its first missions would be to “create an innovation nation with the highest proportion of high-skilled jobs in the Organisation for Economic Co-operation and Development by 2030.

We will meet the OECD target of 3 per cent of GDP spent on research and development by 2030”. To back up its mission statement, the manifesto outlines the key areas that it believes need to be addressed to ensure this continued innovation, which includes investing in skills, infrastructure, UK supply chains, research and development, and energy costs.

It would identify strategically significant industries and form councils for each to oversee future security and growth. It would also encourage private investment by removing new plant and machinery from business rate calculations. It also outlines a commitment to renewable energy projects, to help create more manufacturing and energy jobs, as well as aiding the environment.

Time will tell

Both manifestos offer a commitment to innovation and skills development, the two areas in which UK manufacturers need continued investment to help the industry to grow and retain its global position. We will be keeping track of the election and its impact on the manufacturing industry over the coming months.