With global wholesale gas prices skyrocketing and the cost-of-living crisis exacerbated by the war in Ukraine, the manufacturing sector is facing a crisis. During the nineteenth century, Great Britain was the workshop of the world. Half the iron and steel produced on earth was made in the UK. Even as late as 1970, nearly a third of UK GDP came from manufacturing. Now the ratio is less than 10% and still drifting down.
A modern manufacturing renaissance must sit at the heart of a new national economy. This report outlines bold solution and puts forward five future-proofed recommendations to achieve this:
- The government should explore employing a competitive exchange rate policy to ensure British manufactures.
- Government should ensure that the Electricity Grid is upgraded and modernized to ensure we are able to cope with the extra capacity.
- Establish an Industrial Strategy containing the priorities for government and one of which should be an expansion of onshore wind.
- Government should explore expanding capital allowances or government loans for low carbon investment.
- The government should use its new Brexit freedoms to build resilience in the UK economy and to support a green manufacturing renaissance including the protection of key industries and energy supply.