Make UK says British industry wants a better strategy and links with the EU from the next government

Author: Andy Bruce

(Reuters) – British manufacturers want the next government to present a formal industrial strategy and strengthen trade ties with the European Union, according to a survey released on Monday by the sector’s trade body.

Make UK found that these two issues are top priorities for the majority of more than 300 manufacturing companies it surveyed last month, with 69% supporting a credible industrial strategy and 54% supporting stronger trade links with the EU.

The UK government last set out a formal industrial strategy in 2017, and in 2021 it introduced policies on infrastructure, skills, trade and net zero into a less sectoral growth plan.

Opinion polls show that the opposition Labor Party is the clear favorite in the national elections scheduled for July 4. It plans to establish an Industrial Strategy Council and adapt trade policy to the needs of the industry.

The Make UK survey showed an increase in optimism and willingness to work in the manufacturing sector, which accounts for less than 10% of British economic output.

“Finally, manufacturers can see concrete signs of growth and much brighter economic prospects for the future,” said James Brougham, senior economist at Make UK.

“With prices cooling and potential interest rate cuts, the next government must capitalize on this scenario by delivering a modern, long-term industrial strategy that extends beyond the 2030s and enjoys cross-government support.”

Improving the UK’s poor trading performance will be one of the next government’s priorities.

The volume of British exports of goods and services in aggregate has fallen since late 2019 – when the last election was held – unlike any other advanced Group of Seven economy.

Business research shows Brexit has hurt trade flows and investment, although exports to non-EU countries have also been weak, surprising economists.

Make UK said the survey showed “strong support” from manufacturers for improved trading conditions with the EU, which came into force three years ago.

(Reporting by Andy Bruce; Editing by David Milliken)