Make UK has expressed strong support for Labour’s ambitious industrial strategy, highlighting significant opportunities for investment and growth.
- Labour’s Invest 2035 strategy promises long-term stability and aims to reshape the UK’s industrial landscape.
- Make UK survey indicates 70% of members expect increased reshoring due to the proposed strategy.
- Reshoring could significantly boost the manufacturing sector, potentially growing its contribution to UK GDP by £142 billion.
- Key challenges remain, such as high interest rates, which need addressing for successful implementation.
Make UK has expressed robust support for Labour’s industrial strategy, marking it as a potential catalyst for substantial investment and economic growth. The organisation views the strategy as crucial for reshaping the UK’s industrial future, encouraging reshoring and bolstering domestic manufacturing capabilities. As per a recent survey by Make UK, a striking 70% of members anticipate that Labour’s strategic proposals will accelerate the reshoring of their operations, significantly enhancing the UK manufacturing sector.
The Invest 2035 strategy is central to Labour’s promise of providing a stable fiscal environment over the long term, fostering business continuity and growth. It aims to establish a standing industrial strategy council to maintain consistency in policy implementation, ensuring the necessary support for various industries. These sectors include advanced manufacturing, clean energy, creative industries, defence, digital technologies, financial services, life sciences, and professional and business services.
According to Make UK, adopting this strategy could be transformative, potentially increasing the manufacturing sector’s GDP contribution by up to £142 billion. Currently, investments stand at £38.2 billion per annum, yet with reshoring and increased local investments, these figures are expected to rise sharply. The senior economist at Make UK, Fhaheen Khan, underscored the pressing need for such an initiative, stating that the strategy could unlock significant dividends in automation and digital enhancements, thereby attracting higher-skilled workers.
Interest rates, however, present a formidable challenge to implementing Labour’s vision. High rates have been identified as a critical hindrance to investment, with many in the industry calling for reduced rates to facilitate better financing conditions. Additionally, aligning with international advancements in green technology is deemed essential, as other major economies continue to enhance their financial commitment to sustainable industries. The UK’s competitiveness in these sectors rests heavily on swift action.
Manufacturers also emphasise fiscal reforms, with a focus on reducing corporation tax and improving capital allowances. Over half of Make UK’s survey respondents highlighted the need for these reforms to significantly impact investment positively. There is a particular emphasis on expanding allowances for software and leased machinery, seen as pivotal in fostering an environment conducive to growth and innovation.
Labour’s industrial strategy holds tremendous potential, yet addressing interest rates and fiscal policies is crucial for its success.
