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3 minute read

Make UK calls for action plan to support sector recovery

Britain’s manufacturers are calling on the Government to bring forward a clear, long-term economic action plan which provides business and industry with a consistent strategy to help them steer a path through the long haul of the crisis.

The call was made by Make UK publishing its own three point action plan which contains proposals for the immediate lockdown period, an exit strategy and long term economic and industrial recovery. While the announcement last week from the Chancellor to extend the furlough scheme was welcome, Make UK says it believes these proposals will help place UK manufacturers on an equal footing with international competitors.

Make UK is calling on the government to provide a long-term action plan to support the manufacturing sector’s recovery / Picture: Getty/iStock


Make UK has also offered to lead the manufacturing sector working with Government, as it did on the VentilatorChallenge, in building robust national capacity for mass regular testing of the UK population. This would effectively identify those areas which need additional measures to deal with Covid-19 outbreaks and avoid future waves of national lockdowns.

Publishing its plan ‘Prepare, Implement, Lead’, Make UK backed its view that the crisis has many months to run into next year with data from a survey of almost two hundred companies showing over a third (36.8%) believe it will take longer than twelve months to return to normal trading, whilst over a quarter (26.8%) believe it will take between six and twelve months. Just 26% of companies expect to be at full operating capacity at the start of 2021.

Make UK chief executive, Stephen Phipson, said: “Government has already done a huge amount to support business but, as we move into second lockdown, manufacturers and wider industry needs a clear strategy that ensures we prepare, implement and lead from the start to prepare for the long-term.

“Businesses need as much certainty and stability as possible during these challenging times. Moreover they need consistency of support. The current piecemeal and ever-changing model of support is not giving firms sufficient time to plan and prepare. Consistent, longer-term support that mirrors our international competitors is now needed.”

As part of its action plan, Make UK has called for the immediate establishment of an Industry Action Group which would feed weekly impact and intelligence data each week into COBRA on what level of support is needed to protect businesses, employees and communities. At the same time, Government must also work with key trading partners to ensure borders remain open for goods and services and key freight routes protected.

Make UK wants to establish an Industry Action Group to feed weekly impact and intelligence data to the government / Picture: Getty/iStock


This must be followed by a clear exit strategy with collective agreement between industry, scientists and Government on when lockdown ends, including a fully functioning test, trace and isolate system that removes the time delays that employers and their employees currently face.

Looking forward, as well as securing a deal with the EU, Make UK says the Government must set out a ‘ready to go’ strategy to fire up demand and help repair the economic damage, including:

Improving skills and create jobs

Introduce an amnesty and national insurance contributions and other employment taxes
Establish a national skills taskforce to help redeploy highly skilled engineers and technical workers who have found themselves unemployed
Reform the apprenticeship levy to help arrest the sharp decline in new starts

Boost investment and innovation

Double the R&D tax credit and make it more accessible to SMEs
Extend the temporary increases in investment allowances due to finish at the end of the year
Immediate roll out of 5G across all regions

To mitigate cash flow challenges and sustainable debt management

Immediately waive business rates for the manufacturing sector and reduce the costs of business rates in the long run
Introduce financial instruments that allow manufacturing businesses to manage their debt sustainably

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