In a pivotal move, Make UK has shown robust support for Labour’s forward-looking industrial strategy. The potential for large-scale investments and reshoring is immense.
Make UK believes Labour’s strategy could drive billions in investment, significantly boosting reshoring of manufacturing to the UK. A Make UK survey indicates 70% of its members expect reshoring to accelerate due to Labour’s strategy paper, ‘Invest 2035’. Establishing a standing industrial strategy council is key, ensuring long-term policy stability and preventing disruptive short-term changes.
Make UK estimates that the UK manufacturing sector, currently valued at £217 billion, could expand to 15% of GDP, injecting £142 billion into the economy. With current industrial investments at £38.2 billion annually, reshoring and increased UK operations could greatly augment this figure. Fhaheen Khan, a senior economist at Make UK, noted the strategy’s potential to harness automation and digital technologies and recruit higher-skilled workers.
Khan also stressed the necessity for the UK to act swiftly. With global giants like the US, Europe, and China boosting investments in green technologies, the UK needs to maintain its competitive edge.
According to Make UK’s member survey, industrialists prioritise UK facility investment, automation, and R&D. Export growth, especially enhancing trade with the EU post-Brexit, is crucial.
Fiscal incentives rank high, with over half of respondents advocating for a corporation tax reduction to encourage investment. Expanding capital allowances for software and extending full expensing to leased machinery are significant for industrial growth.
Despite optimism, manufacturers face substantial hurdles, particularly high interest rates. Make UK’s survey highlights interest rates as the main barrier to investment, raising hopes for Bank of England rate cuts.
Aligning with international trends, especially in green technologies, is crucial. As other major economies increase their green industry investments, the UK must follow suit to sustain global competitiveness.
The strategy prominently features backing for green technologies, aligning with global standards.
This alignment is imperative for the UK to remain relevant in the fast-evolving industrial landscape. Rapid advancements in green technologies demand strategic, well-timed investments.
A pivotal aspect of the strategy is creating foundational councils that ensure consistent policy application across sectors.
These councils aim to avoid the pitfalls of inconsistent policy changes that have previously hindered long-term industrial planning.
Make UK’s support for Labour’s industrial strategy could herald a transformative era for UK manufacturing. Its focus on long-term stability, green technology, and strategic investments sets a promising path for the nation’s industrial future.
In conclusion, Make UK’s backing of Labour’s plan signifies a hopeful future for UK’s industrial expansion. The emphasis on strategic growth and technological advancement is crucial for sustained competitiveness.