‘Growth’, ‘make work pay’, ‘skin in the game’ – New Prime Minister Sir Keir Starmer has lofty ambitions for the UK economy, hoping to “secure the highest sustained growth in the G7.”
Starmer spoke relentlessly about efforts to grow the UK economy in the general election – sometimes without much in the way of a definitive answer – and continues to beat the growth drum after Labour’s first 100 days in power.
To recap events so far: the first 100 days of the Labour government have now passed, we have a looming financial budget on October 30th and we’ve just seen a record-breaking UK investment summit, securing £63bn worth of investment and forecast to create 38,000 new jobs in the UK. It proves that global confidence in the UK economy is beginning to return, but what about domestic businesses – and more specifically – manufacturers?
Luckily, a plan is beginning to come together. Invest 2035: The UK’s Modern Industrial Strategy was announced on October 14th, an Industrial Strategy green paper outlining the government’s 10-year plan to ‘deliver stability’ and invest in high-growth sectors.
The new Industrial Strategy is the government directing the structure of the economy, attempting to consciously lead the economy towards the overarching goals of growth, with an added focus on decarbonisation, economic resilience and devolution.
Advanced manufacturing is one of the eight growth-driving sectors identified, alongside clean energy industries, defence, digital and others.
Rather than hearing solely from the government, we wanted to take a page out of the Prime Minister’s book and talk to the people with “skin in the game”, which is why we spoke to Barry Leahey MBE (pictured, above), President of educational play experts Playdale Playgrounds about the ways Made in Britain manufacturers could be supported further by the government….
How will Made in Britain manufacturing play a part in the UK’s strategy?
Over 200,000 manufacturing jobs have been lost over the last decade, in an obvious and significant loss for workers, businesses and ultimately, the UK economy. According to the True Impact Report 2024, the manufacturing industry is worth £518bn, proving just how important UK manufacturing is to the national economy. The government recognises this, and is also aware of the parallel goal of decarbonisation, which is present in the Invest 2035 strategy.
Domestic manufacturing has a lower carbon footprint than international, thanks to the environmental friendliness of domestic shipping to UK customers in comparison to exporting worldwide. Decarbonisation can take place by increasing our use of UK renewables, building energy resilience and protecting the UK’s energy sector from reliance on foreign actors – which has led to turbulent prices over the last few years.
The UK Investment Summit secured further funding for offshore wind farms, Orsted (£8bn) and Greenvolt (£2.5bn), while the government’s plans for the publicly-owned Great British Energy mean Made in Britain manufacturers will benefit from greater energy resilience and therefore more consistent bills, in the future.
This is particularly beneficial for Made in Britain manufacturers, as it has been found that British consumers are 58% more likely to buy products and services from environmentally conscious businesses.
Does Made in Britain matter to consumers?
“Products that are made in Britain are a symbol of guaranteed quality made to stringent regulation,” says Barry Leahey MBE, President of Playdale Playgrounds. “Quality control is stricter when you oversee the production – and in our case installation – first-hand. Customers know that they can contact you in their time zone, speak to a representative, and get the outcome they want,” Leahey continues. “The level of British quality is now more important than ever, and the government is right to recognise the effect Made in Britain businesses have in the domestic and global marketplace.”
What has the government proposed?
“The government has spoken consistently about growth over the last 100 days, but to see growth we must also see investment into our communities, investment in current Made in Britain businesses, and investment in the future UK manufacturers who are yet to realise their ambitions,” Leahey says.
“The government’s Invest 2035 green paper does ask respondents to identify areas of issue relevant to each targeted industry, which holds true to the Prime Minister’s calls for insight from those who “have skin in the game.”
“In the instance of manufacturing playground equipment, we find the lack of investment in public parks, schools and infrastructure indirectly affects the scale at which we can manufacture. This is because the UK’s play areas have declined massively, with 793 play parks shut down over the last 10 years,” Leahey explains. “It is right to ask these sectors the issues they are facing, and it is a positive first step to tackling the long-term issues the advanced manufacturing industry faces.”
In short, the government is proposing an Industrial Strategy Council to ‘end the policy merry-go-round’ of past governments, put a focus on job creation in high-growth sectors and update employment rights to fit a modern economy – a reference to the government’s recent announcement of the Employment Rights Bill.
“These areas of focus are appreciated, especially in regard to helping train our workforce,” says Leahey. “Playdale has always put an emphasis on our fantastic employees, giving back to them with top-notch training and endless appreciation. The UK has a tremendously skilled workforce, but the potential is currently tapped by a lack of funding in training services – especially for those who wish to retain in a new industry.
“Additionally, the promise to end the – as they put it – ‘policy merry-go-round’ is welcomed. Instability spells bad news for UK manufacturers that need calm in the market to make the right decisions regarding their business, staff and customers,” says Leahey. “As long as ‘stability’ does not equal complacency, these changes are welcome.”
How could the government support advanced manufacturing further?
It would be fair to say the UK government’s current plans for public investment and creating new policies to support advanced manufacturing are in their infancy. The groundwork is being laid out, private investment from the Investors Summit 2024 has been very successful, and now all eyes are on Chancellor Rachel Reeve’s first budget on October 30th.
The advanced manufacturing sector’s wish list for the budget’s contents could go on and on – so we asked Barry Leahey MBE about the three main points he would like to see in his ideal autumn budget.
“For starters, increased investment in the UK apprenticeship scheme,” says Leahey. “The apprenticeship scheme is fantastic in the UK – the benefits of the government helping advanced manufacturing businesses train specialised workers cannot be understated. I would like to see government contributions to apprenticeship wages increased, further helping new manufacturing businesses train the UK workforce and pay wages that merit their special skills.
“Further investment in R&D will help the UK’s advanced manufacturing sector compete on the global stage,” says Leahey. “We cannot be playing catchup; we need to be leading the charge. I would like to see R&D tax credits expanded, as well as increased investment from the £270m pledged by the previous government in the Autumn budget last year (2023).”
“Finally, I want to see more efforts to help scale up UK-based advanced manufacturing. Many businesses struggle to scale due to the high cost of the specialised technologies needed to produce their fantastic products and services,” Leahey explains. “Low-interest loans and grants need to be more available for our sector, sooner rather than later, so we can plan the next five years accordingly.”
The love for Made in Britain businesses isn’t going away any time soon. The Made in Britain Impact Awards 2024, a celebration of UK manufacturers and businesses, are set for November 6th – and hopefully, they will also be celebrating a new future for UK manufacturing with possible further investment to be announced in the autumn budget.
