Manufacturing Mondays

By Manufacturing Mondays

🤔 Is the Industrial Strategy making a comeback?

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Manufacturing Mondays
Manufacturing Mondays
We’re back! After a short break, we are back with a jam-packed edition of Manufacturing Mondays.
In this week’s Manufacturing Mondays we discuss why we might be seeing the Industrial Strategy make a comeback - or at least get the Government to see the value in having one.
We argue a key part of that should be better partnership working between Government and Industry, and we see what that can achieve with two big policy wins for Make UK in securing changes to the Help to Grow Scheme and Recovery Loan Scheme.
With the summer holidays well and truly in full flow, this week the Make UK team are using the thinking time to brainstorm policy plans for 2023, and what big policy issues we think will be coming up.
🧠 Thinking hats on, happy Monday!

Industrial Strategy, making a comeback?
Last week the Labour Party set out its priorities should it come to power, and they focused on growth. In fact, it was “Growth, Growth, Growth”. This was of course music to manufacturers’ ears, but what really landed was the commitment to an Industrial Strategy and supporting Industrial Strategy Council.
We’ve been vocal about the decision to scrap the Industrial Strategy, as well as the failings of the current Plan for Growth, so a commitment to reintroduce an Industrial Strategy is certainly a good thing.
Make UK Campaigns
The UK faces massive societal and economic challenges, requiring a laser-like focus on productivity and growth.

There is no silver bullet, but @MakeUKCampaigns welcomes the renewed focus on an industrial strategy which should be at the heart of any future UK economic strategy. https://t.co/QYKR1mwGEn
What will be crucial, however, is what the Strategy covers. We hope to see at the heart of this a renewed partnership between business, industry and Government. Only together can we tackle the big societal issues and opportunities we face, from climate change to digitalisation.
But more immediately, it can help to set a plan for economic growth and exploit all policy levers possible to deliver this.
Our July economic forecast shows we expect inflation growth will slow down a little towards the end of the year, bringing overall inflation to around 8.80%. However, these figures do not do justice to the level of price increases manufacturers are facing upstream. The producer price index (PPI) has exceeded 20% this year, more than double the inflation faced by consumers.
This is yet another warning of the need to tackle the cost of doing business crisis.
🆕 Get our economic forecasts here
Our rebuttal in The Observer
Torsten Bell, CEO of the Resolution Foundation wrote in a piece in the Observer that manufacturing is not our forte and that the UK should focus on its service economy in developing future economic policy.
We certainly do agree that services are an important pillar of our economy, in fact, we argued that very point at the Institute for Government’s recent event on Levelling Up.
But as you probably could have guessed, we wrote back explaining that whilst the UK does indeed have strengths in its service sector, it also has an equally strong manufacturing base - which we should support.
As Make UK, CEO Stephen Phipson put so well…
We have passed the stage of debating whether to focus on services or manufacturing: there can and must be room for both in a successful economy.
You can read our rebuttal 👇
And if you’re reading this Torsten, we’d be happy to arrange a visit to a manufacturer so you can learn more about the industry, DM us.
Letters: Manufacturing is key to our future | Manufacturing sector | The Guardian
Government and Industry working in parternship
The last two weeks have been good examples of what happens when Government is willing to listen to Industry. We saw:
👏 Extension of the Recovery Loan Scheme
We saw the Recovery Loan Scheme for businesses extended for two more years. It has supported manufacturers’ recovery and growth after the pandemic given the cashflow constraints they have been under. We know the scheme can particularly help SMEs who are at the forefront of the cost of doing business crisis.
Dept for BEIS
The Recovery Loan Scheme for businesses has been extended for 2 more years.

First set up to help encourage recovery & growth after COVID, the scheme supported 18,500 companies.

The extension will help SMEs with cost-of-living pressures.

More info:
https://t.co/oLnfOpCC3G https://t.co/X80L7nUk9Q
👏 Expansion of Help to Grow Digital
By widening the scheme to allow access to the smallest businesses it can help bring digital solutions to almost all manufacturers. Many manufacturers make use of e-commerce to grow their sales, so the inclusion of this software is welcoming for our members. The inclusion of one-to-one support for SMEs is also a great addition to maximise the scheme’s benefit.
Room for more? There is still a gap to close if we are to make this scheme a true benefit to manufacturers by expanding out to more bespoke solutions, such as supply-chain management software.
Dept for BEIS
📢 NEW: We’ve expanded #HelpToGrow Digital, supporting businesses to supercharge sales & boost productivity with up to £5,000 savings on approved software purchases. Now including eCommerce software and businesses with 1-249 employees can now apply 👉 https://t.co/nR4PDS6Rfc https://t.co/EVtgaoWVfY
In the news
A full review of the apprenticeship levy system is needed…
Make UK Campaigns
❌ Unspent Levy funds are not due to a lack of appetite to train but the limitations the system places on employers. We've said this since inception along with others.

It is now inevitable that a full review of the apprenticeship levy is unavoidable.
https://t.co/ORewCA31Yl
Regional analysis shows the impact of loss of trade…
UK Trade & Business Commission
Fascinating piece from @lisaocarroll: Brexit-supporting regions in the UK are becoming increasingly dependent on the EU for their manufacturing exports, research by @MakeUK_ has found.
https://t.co/GjnaO5m1fQ
We 💚 policy and manufacturing, so let’s talk:
📱 Twitter
📧 Email
💬 LinkedIn
🔗 Linktr
Copy editor: Bhavina Bharkhada, Make UK Head of Policy & Campaigns
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Manufacturing Mondays
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