The UK manufacturing sector is calling on the government to prioritise the development of a comprehensive industrial strategy to attract investment and mitigate the damage caused by the Brexit deal. Make UK, a prominent trade body representing major industry players such as Rolls-Royce, Siemens, Airbus, Tata, and Jaguar Land Rover, is set to meet with Chancellor Rachel Reeves on Wednesday to discuss these pressing matters.
Stephen Phipson, the head of Make UK, emphasised the urgency of implementing an industrial strategy, stating that international companies with billions to invest are hesitant to commit to the UK without a clear plan in place. While the country may not be able to compete with the financial incentives offered by the US Inflation Reduction Act or the EU’s green deal, Phipson believes that Britain can excel in innovation if a cohesive strategy encompassing technology, robotisation, renewable energies, and training is established.
Phipson also intends to address the need to rectify the “terrible” damage inflicted by Lord Frost’s trade and cooperation agreement with the EU, which he described as a “disaster” for the manufacturing sector. He attributed this to the previous Tory government’s “fundamental errors” in negotiating the trade deal.
The UK’s lack of an ambitious industrial plan since 2010, when the Catapult Networks were introduced, has left the country lagging behind in terms of robotics adoption and the development of sustainable energy infrastructure. Phipson highlighted the success of the 2010 industrial strategy in establishing the UK as a world leader in advanced materials and commercial aerospace components, citing Airbus in Broughton, north Wales, as an example.
To address the challenges posed by Brexit, Make UK will urge Reeves to consider solutions such as a return to the EU’s customs union, mutual recognition of professional qualifications, regulatory alignment, and customs simplification. The failure to include “diagonal cumulation” clauses in the Brexit deal has severely impacted cross-border production industries, with the number of products exported to the EU falling by 80% since Brexit.
The government has stated that its new industrial strategy will focus on delivering long-term, sustainable, and inclusive growth across the UK by driving investment into the economy. It also plans to establish Skills England to foster collaboration between businesses, industry, and education, as well as an independent Industrial Strategy Council to partner with businesses in implementing and monitoring the strategy over the long term.
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