Labour’s proposed strategy for UK industry gains strong support from Make UK

The Labour Party’s industrial strategy has won significant backing from Make UK, the country’s leading trade body representing the manufacturing sector. Make UK is optimistic that a well-implemented plan could drive substantial investment and encourage reshoring of manufacturing to the UK. This belief is underscored by findings from a recent survey by Make UK, revealing that 70% of its members anticipate accelerating their reshoring activities in response to Labour’s strategy.

Labour’s proposal, titled Invest 2035: The UK’s Modern Industrial Strategy, lays out a long-term vision to foster business stability. By creating an environment for businesses to plan well beyond the usual yearly horizon, it aims to promote consistent industrial growth over the next decade. A central element of this strategy is the formation of a standing industrial strategy council, designed to provide policy consistency and reduce disruptions from short-term political shifts. The strategy also prioritises supporting eight key sectors where the UK has strong potential: advanced manufacturing, clean energy, creative industries, defence, digital technologies, financial services, life sciences, and professional and business services.

Make UK believes this strategy could be transformative. The manufacturing sector, which currently contributes £217 billion to the UK economy, could grow significantly, reaching up to 15% of GDP and potentially adding another £142 billion. Investment in the industry stands at £38.2 billion per year, but Make UK anticipates that reshoring and expanding UK-based investments could lead to much higher figures. Fhaheen Khan, Make UK’s senior economist, expressed excitement about the strategy’s prospects, noting that manufacturers are ready to capitalise on these new opportunities, especially in automation and advanced digital technologies. Khan also highlighted the critical need for the UK to act quickly, especially as the US, Europe, and China ramp up investment in green technologies. According to him, taking swift action would help the UK remain competitive on the international stage.

The Make UK survey reflected the priorities of industrial leaders, with investment in UK facilities, automation, and research and development emerging as top objectives. Many manufacturers are also focused on increasing exports, particularly with the European Union, as the UK seeks to strengthen trade ties in the post-Brexit period. Fiscal incentives rank high on the agenda for many surveyed, with more than half of respondents suggesting that a reduction in corporation tax would have a significant positive impact on investment. Expanding capital allowances to include software, as well as extending tax benefits to leased and second-hand machinery, were also highlighted as steps to stimulate industrial growth.

However, some obstacles remain. High interest rates have been a notable barrier to investment, with many companies hoping for future cuts by the Bank of England to ease this pressure. Additionally, manufacturers see it as essential for the UK to align its strategies with international efforts, particularly in green technology. The US, Europe, and China are all making swift advances in green investments, and for the UK to secure its competitive edge, it must not fall behind in these initiatives.

Labour’s industrial strategy has received broad support within the manufacturing sector, with Make UK leaders pointing to the immense potential for growth if the proposed measures are implemented effectively. Although challenges such as high interest rates remain, there is optimism that with the right policies, the UK can strengthen its manufacturing sector and position itself competitively on a global scale.

Likewise Group PLC (LON:LIKE) is a distributor of floorcoverings and matting and has the opportunity to consolidate the domestic and commercial floorcovering markets to become one of the UK’s largest distributors in this sector.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn

More articles like this

Likewise reports sales growth amid continued investments

Likewise, a floor coverings distributor, has reported an increase in sales for the first half of 2024, reflecting its ongoing commitment to investment in various aspects of the business. The company’s unaudited interim results, which cover

UK manufacturing sector records steady growth in September

UK manufacturing continued to grow steadily in September, with output and new orders both increasing. The domestic market remained the key driver behind this expansion. However, there were signs of caution among decision-makers, with the upcoming

Likewise Group steadily moves towards growth goals

The Likewise Group is making steady progress towards its medium-term growth objectives, as shown by its recent half-year figures. For the year ending June 30, 2024, the UK floor coverings distributor saw a 6.2% increase in

UK manufacturing sector steadies in August

The UK’s manufacturing sector demonstrated resilience in August, according to a recent report by S&P Global. The Manufacturing Purchasing Managers’ Index (PMI) held steady at 52.5, unchanged from the preliminary estimate and slightly up from 52.1

UK manufacturing sees continued growth amid domestic demand

UK manufacturing showed further signs of recovery in August, with increases in output, new orders, and employment. The latest data from the S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) revealed a rise to 52.5, a

Choosing the Perfect Floor: Dark vs Light

Choosing the perfect floor for your home or design project is more than just a practical decision; it’s about creating a space where comfort and aesthetics blend seamlessly. One of the first questions you’ll face is

UK manufacturing sector sees significant growth

The UK Purchasing Managers’ Index (PMI) for the manufacturing sector reached 52.1 in July, marking an 18-month high, as reported by financial services company S&P Global. This rise indicates a strengthening in output and new orders,

Choosing the best kitchen flooring

Tile and vinyl are common choices for kitchen flooring, but what about alternatives like hardwood or laminate? Must the best kitchen flooring be waterproof, or are there other solutions? Luxury vinyl is a multilayered PVC flooring

UK government’s commitment to manufacturing and technology

The Manufacturing Technologies Association (MTA) celebrates the new government’s strong commitment to revitalising the UK’s manufacturing and technology sectors. For over a century, MTA has advocated for a comprehensive industrial strategy, and the new administration’s recognition

Likewise Group initiates £250,000 share buyback programme

Likewise Group plc, a rapidly expanding UK floor coverings distributor, has unveiled plans to initiate a share buyback programme. The company intends to repurchase its ordinary shares, valued at £0.01 each, with a maximum total consideration

Likewise Group launches £250,000 share buyback programme

Likewise Group plc (LON:LIKE), the fast growing UK floor coverings distributor, has announced that it intends to conduct a share buyback programme of ordinary shares of £0.01 each in the capital of the Company up to a maximum