Backing Ambition for Growth
Commenting on the plan, Lord Richard Harrington, Chair of Make UK, said:
“We fully endorse the Government’s ambition to be the best place in the world to start, grow and invest in Advanced Manufacturing. Today’s Sector Plan outlines how industry and Government can work together to build business resilience, boost exports and upskill the next generation.
The focus on regional Advanced Manufacturing clusters is especially welcome, ensuring more communities across the country can benefit from the jobs and prosperity manufacturers deliver.”
Energy Price Relief Essential for Competitiveness
On measures to address industrial energy prices, Ben Fletcher, Chief Operating Officer at Make UK, said:
“Government has listened to our calls for industrial energy prices to be cut in line with international competitors.
All eyes are now on the forthcoming consultation, which will set an energy intensity threshold for eligibility. With more than a quarter of manufacturers saying electricity accounts for 11–25% of total business costs, it’s crucial the sector is within scope. We’ll be pushing hard to ensure Government moves quickly on both consultation and implementation.”
Skills Investment Key to Closing the Gap
Responding to the skills element of the strategy, Verity Davidge, Director of Policy at Make UK, said:
“People are the foundation of any successful Industrial Strategy. We strongly welcome the Government’s investment in engineering skills and commitment to reducing the manufacturing skills gap.
Supporting recruitment and upskilling is a promising start to tackling the 50,000 vacancies in the sector. But it’s vital the Government now develops a long-term skills vision, ensuring employers can fully use the Growth and Skills Levy and Immigration Skills Charge, and reforms funding mechanisms to futureproof the training market.”
Improved Access to Finance for SMEs
On finance, Seamus Nevin, Chief Economist at Make UK, commented:
“Access to external finance is one of the biggest growth barriers for SMEs — which make up 99% of UK businesses.
Today’s announcement of new financial incentives and an extra £7 billion for the British Business Bank is a decisive step. It will enable more UK manufacturers to invest, scale up, and access new market opportunities, unlocking the full potential of our innovative industrial sector.”
Other Comments From Industry Experts
Jim Ribeiro, partner and patent attorney at European IP firm, Withers & Rogers, said: “The new 10-year industrial strategy is a good start, particularly the investment in research and development (R&D) and the move to cut the electricity bills of energy-intensive manufacturers – both measures are designed to boost businesses and sectors that have the potential to drive economic growth.
“However, the Government could have gone further. Businesses in growth-driving sectors also need clear intellectual property (IP) policies to incentivise investment in innovation – incentives that play to Britain’s strengths as an R&D hub for the world, and boost UK competitiveness. As pointed out, corporation tax relief can already be claimed by businesses that profit from patented innovations (the Patent Box regime), but it is disappointing that no new IP-based incentives to promote investment in innovation have been mentioned in this strategy.
“Patent filings data from the European Patent Office (EPO) shows that innovators based in the UK are filing more patents in Europe year-on-year, but as a proportion of overall filings, patent filings at the EPO by UK-based businesses continue to trail those originating in other European countries, such as Germany, France, Switzerland and the Netherlands, by some margin.
“To succeed in developing the UK’s growth-driving sectors, a step change in patent filing activity is needed, with more patents directed to efficiency and value-driving technologies that enable businesses to scale their activities in the UK without pricing their goods out of their end markets. This is key to improving UK competitiveness in key areas of opportunity, such as manufacturing and digital technologies. At the moment, UK-based SMEs are not engaging fully with the patent system, and that is a missed opportunity.
“To succeed at reindustrialisation the Government must also place greater focus on grassroots investment in the UK’s higher education system. Expanding the skills base at this level will support the development of innovative SMEs.”
