Chancellor John Healey has pledged to put investment, innovation and jobs at the centre of the government’s growth agenda, while positioning advanced manufacturing as a key part of its plans to rebuild the UK economy.
Healey said advanced manufacturing is one of the government’s eight Industrial Strategy growth sectors, as he outlined plans aimed at increasing investment, supporting British businesses and driving growth across the regions.
Key takeaways
- Eight Industrial Strategy growth sectors, including advanced manufacturing
- 4.9% increase in business investment since the election
- 25% planned reduction in the burden of business regulation
- £150m for northern scale-ups through the British Business Bank
- £200bn backing public financial institutions
- Green Book discount rate to fall from 3.5% to 3%
Government targets deindustrialisation
The Chancellor directly addressed the decline of UK industry, saying the country had been deindustrialised as the cost of making and building goods domestically increased.
He said: “Our country was de-industrialised, as the cost to make anything, to build anything here soared, and our dependence on unreliable sources grew including in areas critical to our national security and sovereignty.”
He said the government’s response would be to give local leaders greater power and resources to build infrastructure, attract private investment and deliver local industrial strategies.
Investment and regulation in focus
For manufacturers, the government’s plans include a commitment to reduce the burden of business regulation by 25% by the end of the Parliament.
Healy also said business investment has increased by 4.9% since the election, while changes to the Treasury’s Green Book will reduce its discount rate from 3.5% to 3%, with the aim of giving projects with greater long-term economic potential a stronger chance of receiving investment.
He said: “I am committed to reducing the burden of business regulation by 25% by the end of this Parliament.”
The government also plans to use public procurement more strategically to support British businesses and is extending judicial review reforms to major infrastructure projects.
Backing British industry and innovation
Healey said the government would be “proud to back British businesses, buy British goods and promote British exports” as part of its approach to growth.
He also highlighted advanced manufacturing alongside AI, quantum and nuclear fusion as areas where the UK is a global leader. He added: “Our UK formula works: local leaders working with world-class universities, investors, local businesses have created clusters of innovation across the UK.”
The government plans to introduce new regulatory sandboxing powers next year, allowing businesses and innovators to test emerging technologies in controlled environments.
Regional growth and industrial strategies
Regional investment will also form a central part of the strategy. Healey announced £150m from the British Business Bank for scale-ups in the North, alongside the creation of the Northern 500, a growth community for ambitious mid-sized businesses.
The Chancellor also said a roadmap for fiscal devolution would be set out at the Budget, with the aim of giving regions greater control over resources and investment.
For manufacturers, the speech signals a clear shift towards greater emphasis on domestic production, investment and industrial growth. The focus will now turn to how these commitments translate into concrete measures in the Budget and the government’s wider Industrial Strategy.
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