Andy Burnham travelled to Buckingham Palace today where he was officially appointed as the country’s fifth Prime Minister in four years. It has certainly been a tumultuous period in the history of British politics and the country is crying out for stability and consistency.
The mood is very much mirrored in the world of manufacturing. The sector has been battling on multiple fronts with escalating supply chain challenges, sky-rocketing energy costs and the ongoing issue of skills all giving manufacturers large and small sleepless nights. And all this has come against the backdrop of inconsistency at the very top.
Ever since the launch of the government’s Industrial Strategy just over a year ago, the feeling from the sector has been that talk is cheap. Much has been spoken and promises have been made around an increased commitment to industry, but many manufacturers feel that the time for discussion has now passed and that actions certainly speak louder than words.
What has Andy Burnham said about manufacturing?
- Reindustrialising Britain: Burnham has said he wants to “support every region to set clear and credible industrial ambitions” and create more “world-beating British manufacturers” focused on innovation and exports.
- Backing British industry through procurement: Burnham has argued that government procurement should do more to support UK manufacturers rather than prioritising the lowest-cost overseas suppliers. He has pledged to give greater weighting to social value in public contracts so British firms are better placed to win work.
- Protecting strategic manufacturing: Burnham has identified sectors including steel, defence, energy, food and farming as critical national capabilities, saying the UK should “safeguard sovereign manufacturing and production capability” rather than allowing further industrial decline.
- Skills and technical education: He wants greater parity between academic and technical education, arguing the education system should provide clearer pathways into manufacturing, engineering and other technical careers, with a stronger emphasis on apprenticeships and vocational routes.
- Regional industrial growth: Drawing on his experience as Mayor of Greater Manchester, Burnham has proposed place-based industrial investment, regional “Good Growth Funds” and greater devolution of powers over skills, transport and economic development to help manufacturing clusters grow.
- Energy and competitiveness: Although his comments are often framed around reducing household bills, Burnham has also linked energy reform to improving UK competitiveness, arguing that lower energy costs are essential for economic growth and industry.
So, what does UK manufacturing need from Prime Minister Andy Burnham? Businesses across the UK will be watching closely, but the devil will be in the detail and the attention will be focused on the practical action that helps businesses invest, grow and create jobs, rather than any political slogans.
Speaking in his opening address as Prime Minister Burnham said: “My generation of politicians need to raise our game and rise to the new challenge. We need to show the world that we can regain our stability.
“We have not been good enough and we need to be better. We will make this moment a circuit-breaker for Britain, bringing forward the biggest changes in the last 40 years, a new political and economic model. In the 1980s Britain took some wrong turns; political power was centralised, economic power privatised and large parts of the country were deindustrialised and they still haven’t recovered.
“That’s why we will change politics to be more collaborative – more about problem solving than point scoring. And we will take power out of London and carry it into every postcode in the land so that they can do more. And in doing more we will build a new economy where we will put life’s essentials back under stronger public control to make them more affordable.
“We will reindustrialise Britain using public procurement to back British industry. Later this year I will bring forward a new ten year plan for Britain, laying out a path from where we are now to where we all want Britain to be.”
The manufacturing priorities for Andy Burnham
- Reducing industrial energy costs
- Tackling the manufacturing skills gap
- Creating a less complex trading landscape
Stephen Phipson CBE, CEO of Make UK, commented: “The Prime Minister’s ambition to re-industrialise Britain and seed good growth in every postcode is one that manufacturers will welcome and continue to play their part in delivering. The test now will be turning that ambition into action through implementation of the Industrial Strategy.
“Manufacturers need to see real, urgent progress on the issues that affect their ability to invest and grow. Tackling the high costs of doing business, from energy and business rates to staffing costs, alongside the skills shortages plaguing our sector, must be a top priority.
“The sector stands ready to play a central role in delivering the stronger, more prosperous and resilient economy that the new government wants to build.”
Writing on LinkedIn, Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), said: “On behalf of the UK automotive industry, I congratulate Andy Burnham on becoming Prime Minister and wish him every success as he forms his new Government. The Labour Party has already demonstrated its commitment to automotive manufacturing through the industrial strategy and, building on those foundations, the sector can be a powerful engine for growth, delivering investment, innovation and high value jobs in every part of the UK.
“There remain many challenges to the industry, both at home and abroad, but if we strengthen our competitiveness and provide greater support for the transition to net zero, we can drive reindustrialisation and economic renewal in every region and nation of Britain. We look forward to working with the Prime Minister and his team to realise that opportunity.”
Industry veteran and Managing Director of Westley Engineering, Chris Greenhough also highlighted the issues of skills, energy and trading support, commenting: “The UK has no shortage of entrepreneurial spirit. What we often lack is the environment that allows businesses to thrive.
“My first priority for Andy Burnham would be a genuine commitment to tackling the skills challenge. Manufacturers are crying out for skilled people, yet training remains expensive and time-consuming. A Training Tax Credit would encourage businesses of all sizes to invest more heavily in apprenticeships, upskilling existing staff and developing future talent.
“Secondly, we need a far more streamlined route into the defence sector for SMEs. Defence spending is increasing, yet too many capable manufacturers struggle to navigate complex procurement processes. Smaller businesses bring innovation, agility and specialist expertise, but the barriers to entry remain unnecessarily high.
“Energy costs also remain one of the biggest drags on UK competitiveness. Manufacturers continue to pay significantly more than many of our international competitors. Every pound spent on excessive energy bills is a pound that cannot be invested in new equipment, technology or people. Reducing industrial energy costs would have an immediate impact on productivity and long-term growth.
“Finally, businesses need support navigating an increasingly complex trading landscape. Whether it’s the Carbon Border Adjustment Mechanism (CBAM), tariffs or export compliance, many SMEs simply don’t have dedicated compliance teams. Government should provide straightforward guidance, practical support and simplified processes that allow businesses to focus on what they do best, manufacturing and exporting.
“Manufacturing contributes billions to the UK economy, supports thousands of high-quality jobs across Shropshire and the Midlands, and underpins our national resilience. If the new Prime Minister wants to drive sustainable economic growth, backing Britain’s manufacturers would be an excellent place to start.”
Speaking on the topic of skills, Chief Executive of the Baker Dearing Educational Trust Kate Ambrosi added: “As mayor, Andy Burnham was a strong supporter of technical education opportunities, including through the Greater Manchester Baccalaureate. We hope he brings this enthusiasm to Whitehall.
“He has spoken about helping more young people into work after, on Friday, calling for parity of esteem between academic and technical education routes, something he strived for through the Baccalaureate. The government needs to focus much more heavily on technical education. Not just to rebalance the scales between routes, but so there are greater technical opportunities than academic.
“Young people need more direct pathways into employment: more apprenticeships, more technical university places, more scholarships and bursaries for shortage occupations.
“They also need to be prepared at school for employment. Too many young people are reaching age 18 without knowing what pathways are open to them and without the technical skills and workplace attitudes to follow them.
“Andy Burnham has been a strong supporter of the University Technical College secondary school network that we support, and which send around a fifth of leavers into apprenticeships each year – with just five per cent of leavers becoming NEET. He has also supported the UTC Sleeve initiative which we created. UTC Sleeves involve developing a high-quality, employer-led technical education pathway within a mainstream school.
“The new Prime Minister supported developing UTC Sleeves in Greater Manchester and we will be pushing for his support for a nationwide rollout of this initiative, to tackle the country’s youth unemployment crisis.”
Sir John Lazar CBE FREng, President of the Royal Academy of Engineering, said: “Engineering and technology account for more than a third of the UK’s economy, and support over 8.5 million high value jobs, so we expect them to play a key role in the plan for growth and re-industrialisation. The UK is a global leader in research and innovation – we produce more spinouts and start-ups than any other country in Europe – and the benefits of industrialisation don’t have to be a thing of the past. The UK’s strengths in emerging technology areas such as AI, quantum and clean technology can and should be built on, so that technology improves lives in all parts of the country.
“However, there are real challenges for the new government when our competitors in other countries are forging ahead with implementing advanced technologies, particularly AI, to improve productivity. Our latest research shows that over half of UK engineering and technology firms have not yet adopted any of these potentially beneficial technologies. This needs to be tackled to really unleash potential growth, which is something our network of engineers and innovators are ready to help with.”
Sunny Prakash, Managing Director of plastic fabrication company WERIT UK, based just outside Manchester, added: “Prime Minister Andy Burnham’s first speech set out an ambitious vision centred on devolution, reindustrialising Britain, and delivering a ten-year plan for economic renewal. For manufacturers, those commitments merit close attention because they recognise that long-term growth depends on building stronger regional economies and on giving businesses the confidence to invest.
“One message particularly resonated with me. The commitment to take power out of Westminster and into communities across the country has the potential to reshape how industry and government work together. Businesses face challenges in skills, transport, planning, infrastructure, and investment as interconnected systems. When decisions are made closer to where manufacturing takes place, they can be better aligned with the needs of local employers and regional economies.
“Equally significant was the commitment to use public procurement to support British industry. The government is one of the UK’s largest purchasers of goods and services, and every procurement decision has the potential to strengthen domestic manufacturing, support regional supply chains and encourage investment in innovation and skills. When procurement considers long-term value alongside cost, it helps build industrial capability that benefits communities across the country.
“Having led a manufacturing business in Greater Manchester for more than a decade, I have seen first-hand the strength of our region’s industrial base. Greater Manchester has shown what can be achieved when businesses, education providers and local leaders work together towards a shared ambition. Building on that model through meaningful devolution could create even greater opportunities for manufacturers of all sizes.
“The proposed ten-year plan is equally important. Manufacturing businesses invest over many years, not political cycles. Whether investing in new technology, developing sustainable production, strengthening supply chains, or training the next generation of skilled workers, businesses need confidence that policy will remain consistent and that industry has a clear direction.
“At WERIT UK, we have always believed that sustainable growth is built on continuous investment, collaboration and innovation. These principles are shared by manufacturers across the UK.
“The Prime Minister has set out an ambitious task. The opportunity now is to turn that ambition into practical action. If greater regional decision-making, strategic public procurement and long-term industrial planning are delivered together, Britain has a genuine opportunity to strengthen its manufacturing base, improve competitiveness and create lasting economic growth for communities across the country.
“I look forward to seeing how the government’s industrial strategy develops in the months ahead and, hopefully, how it supports manufacturers of all sizes to compete, innovate and grow.”
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