The Institute for Prosperity has launched a bold blueprint of 10 key policy reforms to revive the British manufacturing industry, and crucially, get our economy growing at over three per cent GDP again.
For over a decade, Britain has been plagued by low rates of economic growth, and with it has followed stagnation in levels of prosperity, productivity, and standards of living. Throughout that same time, investment levels have slipped down to well below the world average, and Britain’s manufacturing industry has been decimated to less than 10 per cent of GDP.
The economic and social impact of these developments has been widespread and very damaging for many. It has left millions, particularly outside London and the South East, feeling left behind and believing that our economy no longer works for them. There are towns and regions across the UK that have been hollowed out by deindustrialisation over the last generation. As light and heavy industry slowly and painfully retreated, thousands of well-paid skilled jobs disappeared as did investment and prosperity. Couple that with the long-term effects of the COVID-19 pandemic, and our economic future looks very bleak.
This paper is a blueprint for jumpstarting our manufacturing industry. It proposes 10 key policy changes to turn the tide on this decline and create a ‘manufacturing revival’. In a nutshell, we have identified the most effective financial incentives and economic policies that benefit both supply (manufacturing infrastructure, research & development, and education & training) and demand (exchange rate and competitiveness).
Ultimately, we must make it pay to site new industry here; we must ensure we are competitive in world markets; and we must invest in skills for the future.
Our Key Top 10 Supply and Demand Policies:
- Make it pay to site new industrial capital in the UK
- Restore technical training
- Reward capital expenditure
- Better finance for manufacturing
- Make infrastructure pay
- Reduce energy costs
- Plan manufacturing better
- Invest in Research & Development
- Keep innovation British
- Be more ambitious
