The Manufacturer Podcast: Autumn Budget | A Chancellor Struggling to Resonate

A timely place to end our series on leadership, as Chancellor of the Exchequer, Rachel Reeves, delivered her Autumn Budget this week.

While we’ve picked out some broadly positive points for industry around energy relief, skills investment, R&D backing, and infrastructure support, this is a budget that appears to have “fallen flat” with a number of leaders.

Has this Chancellor damaged her reputation with the business community to the point of no repair? Henry Anson, Director of The Manufacturer, appears briefly on this week’s episode to have his say.

While we rarely go as far to suggest any government policy is moronic, such impassioned criticism is saved for our ‘Made by a Moron’ section. This week – cable cars and Joe’s porcelain bathroom tiles.

The Budget

Wednesday’s Budget addressed the immediate financial pressures facing manufacturers. In response to calls from industry groups like Make UK, the government came forward with plans to cut electricity prices for manufacturing businesses.

From 2027, the British Industrial Competitiveness Scheme (BICS), will reduce electricity bills for over 7,000 UK manufacturers by up to 25% for eligible businesses.

But questions are still unanswered over which companies qualify for this relief. So far, “frontier” industries like automotive and aerospace, and supply-chain/foundational sectors such as chemicals have been outlined.

And for the most energy-intensive firms, the existing support under the British Industry Supercharger is being boosted, with discounts on electricity network charges moving from 60% to 90% next year.

But eligibility rules aren’t yet final, with a consultation currently open. Critics of this point out that there are some companies that need energy relief immediately, to the point where they may no longer exist if help doesn’t come until 2027, or even next year.

The Budget continues to back the priorities of the government’s 10-year Industrial Strategy. That means sustained support for advanced manufacturing, clean energy, and associated growth industries.

Defence spending is set to increase, underscored by the government’s earlier commitment to intervene and save British Steel and buy British when it is crucial to national security.

There will also be extending support to the automotive industry’s zero-emission and next-gen technologies via the DRIVE 35 programme, increasing the capital & R&D funding envelope through 2035.

Some positive news was also given on apprenticeships, with the government allocating £725 million for the new Growth and Skills Levy.

Under the new Levy, for small and medium-sized enterprises (SMEs), apprenticeships for people under 25 will be fully funded, meaning training costs will be covered with no co-investment required.

We asked leaders in industry for their reaction

Falling short on growth

Three leading figures from the sector have delivered a damning verdict on the Budget, warning it fails to address the fundamental challenges facing the industry.

Graham Corfield of Aviramp, Jennifer Hughes of Transicon, and Craig Pyser from AMufacture have their say.

Criticism varies from the opinions that taxes won’t lead to growth but will put further pressures on business, through to general economic outlook “remaining flat” within the sector.