UK urged to relaunch industrial strategy and stop ‘flip-flopping’

Britain needs to relaunch an industrial strategy and stop “flipping flopping” on initiatives if it is to avoid falling behind on the global stage, manufacturing chiefs have warned.

The call for action by Make UK, which represents 20,000 manufacturers across the country, said British businesses risked losing out to international competitors because of the government’s lack of a long-term plan for the industry.

The report said the government has overseen “flip flopping from one initiative to another”, and called for the creation of a royal commission to develop a long-term, modern industrial strategy to support companies across the UK.

Former Prime Minister Theresa May launched the UK Industrial Strategy in 2017. The initiative focused on increasing jobs and investment outside of London. However, the strategy was scrapped under Boris Johnson, along with a powerful council of business leaders and advisers tasked with overseeing investment in Britain’s hard-pressed regions.

Laimonas Noreika, co-founder and CEO of fintech platform HeavyFinance, said: “Manufacturing plays an important role in job creation and it is crucial to have a detailed industrial strategy in place to spread investment and enable businesses to expand. With businesses feeling more confident, despite high interest rates and rising inflation, will having a clear plan to strengthen the manufacturing sector be the key to driving economic growth.

Noreika continued, “Many countries around the world are already developing incentives to promote investment in low-carbon, sustainable firms and it is vital that the UK does not fall behind in this area.”

Neh Thaker, co-founder of HedgeFlows said: “Having a clear industrial strategy in place to support the manufacturing industry is critical to enabling businesses to hire, grow and expand internationally. With a dedicated plan to attract investors, the UK will be well positioned as a center of excellence for fast-growing, high-impact companies.

“Too many ambitious businesses still lack the financial support they need to enter the next stage of development. Having a refreshed plan and a clear vision will further empower businesses to take the next step forward.” Thaker concluded.

Khalid Talukder, Co-Founder, DK Partners added, “It is astonishing that the UK is lagging behind in such an important area, especially when so many of our international competitors are launching detailed action plans to tempt investors and turbocharge their manufacturing base. Heavy industry is a dynamic part of our economy, so supporting these companies to trade internationally, hire new staff and upgrade the nation should be a top priority for the government.”

Industry expert James Campanini, CEO of VeUP, added: The UK’s manufacturing industry is home to some of the country’s most dynamic and forward-thinking businesses, so having a renewed industrial strategy in place is the least we can do to support them. The global race to attract investment in high-tech companies shows no signs of slowing down, and with millions of companies scaling up cloud investments and skills budgets, a plan that outlines the future of the industry is key to driving sustainable, long-term economic growth.”

Stephen Phipson, chief executive of Make UK, said Britain was the only leading nation in the world without a comprehensive, long-term industrial plan. “If we are to not only tackle our regional disparity but also compete on a global stage, we need a national industrial strategy as a matter of urgency,” he added.

Underscoring the push for a renewed industrial strategy, Make UK said around 80% of companies in a survey of 312 manufacturers believed the lack of a plan put their firm at a competitive disadvantage to companies in other countries. Almost 60% said they believed the government had never had a robust vision for manufacturing, while as many as a quarter said it was the main reason the sector had not grown faster over the past decade.