Make UK endorses Labour’s industrial strategy, predicting substantial investment opportunities.
- Labour’s Invest 2035 plan aims to reshape the UK manufacturing landscape through strategic policies.
- Research indicates a potential shift in manufacturing operations back to the UK, fueled by supportive policies.
- Key sectors targeted include advanced manufacturing, clean energy, and digital technologies.
- Challenges remain, with high interest rates posing a significant hurdle for manufacturers.
Make UK has announced its support for Labour’s industrial strategy, citing the potential for considerable investment in the UK manufacturing sector. The Labour party’s Invest 2035 strategy outlines plans to provide a stable and long-term policy environment that encourages businesses to plan for the future. This approach seeks to drive billions in investment and accelerate the reshoring of manufacturing operations to the UK.
A survey by Make UK reveals that 70% of its members are optimistic about the reshoring prospects due to Labour’s proposed policies. The strategy emphasizes the need for a dedicated industrial strategy council to maintain consistency in policy and avoid the disruptive short-term changes experienced in the past. This consistency is expected to foster growth in several key sectors, including advanced manufacturing, clean energy, and digital technologies, among others.
The organization’s analysis suggests a transformative impact, with UK manufacturing potentially growing from its current valuation of £217 billion to constitute 15% of the GDP, adding an estimated £142 billion to the economy. Fhaheen Khan, a senior economist at Make UK, highlighted the readiness of manufacturers to invest and the sector’s potential for embracing automation and digital technologies. Khan also emphasized the importance of staying competitive with the US, Europe, and China in green technology investments.
Manufacturers have identified several priorities crucial to enhancing UK industrial capabilities. These include increased investment in domestic facilities, greater automation, and a focus on research and development. The potential for expanding exports, particularly to the European Union, is also seen as a significant opportunity in the post-Brexit trade landscape. Fiscal incentives, such as reducing corporation tax and expanding capital allowances to cover software and leased machinery, are considered vital for boosting investment.
Despite optimism about the strategy, high interest rates remain a major obstacle to investment, according to Make UK’s survey. There is a call within the sector for the Bank of England to consider rate cuts to alleviate these pressures. Manufacturers stress the importance of aligning with global efforts in green technologies, highlighting the necessity for the UK to act promptly to ensure its competitiveness on the international stage.
Ultimately, Make UK supports Labour’s strategy as a means to revitalize the UK’s manufacturing sector, despite existing challenges.
