5 min read - 3 Mar, 2026
Make UK CEO calls for new national strategy for resilience
Make UK will today call on the government to work with business to set out a new national vision for resilience, which combines both economic and defence security.
Stephen Phipson, chief executive of Make UK, will tell the National Manufacturing Conference in London that a scaling up of this vision is essential to meet the challenges the UK faces in the face of a rapidly changing geopolitical scenario and accelerating technologies.
He will call on the government to be far bolder in its ambition for change, in particular across its delivery on industrial strategy, energy, skills and defence, saying this is essential not just to boost growth where there is ‘no evidence of the dial being shifted’ but also for our economic and national security.
He will also warn of ‘condemning a young generation of people which we cannot allow to happen’ and urge government to take radical steps in reforming the Apprentice Levy, which has yet to materialise. This must begin by releasing £1bn of unspent levy funds, not currently being used for skills training, so that industry can be part of the solution of addressing youth unemployment by creating a significant number of apprenticeships for young people.
In addition, Stephen Phipson will warn of the existential threat to industry from the UK’s ‘hideously high energy costs’ and will call on government to announce by the summer an extension of the proposed business energy support scheme across the whole sector and bring it forward from 2027.
He will also urge the government to announce a roadmap for bringing defence spending up to 5% of GDP as soon as possible, arguing that the current timeframe of 2035 is too slow in the face of the UK’s NATO commitments and the changing international scenario.
Key messages delivered by Stephen Phipson at the National Manufacturing Conference include:
On the need to boost growth and a new national vision based on resilience: “The ongoing uncertainty created by yet another announcement on tariffs last week is a prime example of this turbulence as we head towards a new world order. To date, the government has done well to walk a delicate political tightrope in a complex environment between maintaining relations with the US, seeking to improve relations with the EU and restoring a more positive relationship with China. All of these are critical for our trade and prosperity, and we are working closely with government to maintain all our trading relationships.
“In particular, in the new world we are operating in, it’s especially important to reset our relationship with the EU. This is not just a matter simply of removing trade barriers but ensuring that we have a positive and mutually beneficial relationship at all levels. The world has shifted on its axis and government and business must be vocal in explaining why this matters for growth and jobs. We must increase the pace of delivering the change that the government promised. In particular, the government stated that growth would be its number one mission but we have yet to see evidence of the dial being shifted. As a result, business needs to see the Prime Minister and Chancellor being far bolder in the government’s economic ambitions.
“As part of this bold new approach and to meet the immense challenges we face, I believe we need a new national vision based on resilience and security, which embraces both government and business. This would combine both our economic security and, as a result, our national security.”
On the need for faster delivery on the Industrial Strategy: “This is one of the most important commitments the government has made and is key to boosting economic growth at national and regional levels. Yet, while there has been progress in some areas, some departments are moving faster than others and there is a danger that it is misfiring at a time when companies need to see evidence that government is putting its foot on the accelerator.
“To step up the pace, it’s now essential that the Industrial Strategy Advisory Council is given a stronger role in holding government to account and reporting back on progress and delivery. This will help ensure that the UK takes its place in the fast lane when it comes to attracting domestic and overseas investment at a time when both are so vitally needed to boost growth.”
On the pressing need to address the UK’s industrial energy costs: “While the energy support scheme announced last summer is welcome, it is the equivalent of taking a peashooter to a gunfight. Since then, government has been dragging its heels with a lack of action that does not reflect the fact that energy costs are an existential threat to the future of the sector.
“The clock is ticking fast, and 2027 is far too late for the scheme’s introduction, while its scope must be widened to cover the whole of manufacturing. Make UK has provided independent modelling on how this scheme could be funded, and I am now calling on the government to announce an acceleration of the scheme and a broadening of its scope, by the summer at the very latest.”
On the need for a skills revolution and reforms to the Apprentice Levy: “Currently, there is more than £1 billion of revenue raised from businesses for skills which is not being used to support employer investment in training, effectively hitting business with an extra tax. By the summer, government should commit to ringfencing the funding for the Growth and Skills Levy and Immigration Skills Charge, creating thousands of new apprentice starts.
“Many of you will remember when industry was told that the Apprenticeship Levy would be a win-win for those who were investing in apprenticeships. Yet here we are, ten years later, with starts in manufacturing down forty per cent, whilst shockingly, we have almost one million young people not in education, employment, or training. That’s a lose-lose situation, which is in danger of condemning a generation of young people, which we cannot allow to happen.”
On the need to boost defence spending to 5% of GDP as soon as possible: “Defence spending is a key driver and accelerator of growth and provider of high skills, especially in areas of the UK that need to see them. The much-delayed Defence Investment Plan is already damaging confidence in the sector, delaying investments and the provision of private capital. This must be announced as soon as possible, whilst, at the same time, government must explore alternative financial options to boost defence spending. The Prime Minister was right at the Munich Conference recently to also commit to working with European partners on joint procurement to help build its defence industrial base. European countries spent 380 billion pounds on defence in 2025 and are increasing spending rapidly, yet less than one-fifth of procurement is conducted jointly.”
The Make UK National Manufacturing Conference is being held at the QE2 Centre in Westminster on Tuesday, 3 March.
