Made in the UK: how manufacturing holds the key to our growth story

With internationally recognised export capabilities and cutting-edge innovation, the UK manufacturing sector is primed to be at the forefront of the government’s growth ambitions. The expertise, quality and innovation of UK manufacturing has long been a global calling. From Sheffield steel and potteries in Stoke, aerospace in the West of England and clean energy in Teeside and Humberside. Yet despite its strengths, there remains growth potential waiting to be unlocked.

Ultimately, higher growth is the only way to deliver long term fiscal sustainability. There is huge investment and growth potential in UK manufacturing. But we must act now or risk falling behind in the global race for growth. 

The UK manufacturing sector is ready to work at pace with the government towards the delivery of its growth ambitions, with a focus on attracting and unlocking investment.

Unlocking industry capability can start with getting people into work with the right skills and harnessing innovation to spur private sector investment. Accelerating a national programme for energy efficiency and supercharging ambitions for increased export capabilities would send a powerful signal to the rest of the world that UK manufacturing is open for business.

This report lays out a series of recommendations for how the new government can make big bold plays to harness the strengths of the sector to become the powerhouse of the UK’s post-COVID economy, seizing upon the benefits of Brexit and driving UK growth forward.

Key recommendations include:

• Increase private sector investment by genuinely tackling business rates and simplifying the UK’s capital allowances regime.
• Let business spend their skills budgets on training that they need by scrapping the Apprenticeship Levy or turning it into a fully flexible Skills Challenge Fund. 
• Accelerate growth through the green economy and support industrial sectors to decarbonise by extending and increasing the Industrial Energy Transformation Fund.
• Support the innovation of manufacturers and drive markets to outcompete the world by expanding R&D Tax Credits to include Capital Expenditure as an allowable expense.
• Prioritise a landscape review of the public funding available to manufacturers to accelerate and unlock private sector investment for growth.

Read the full report for in-depth analysis from our experts.