Lord Bilimoria of Chelsea
CBE, DL, founder of the Cobra Beer Partnership, Chair of the International Chamber of Commerce United Kingdom, and Chair of the Manufacturing Commission
Inigo Jones
Industry, Technology and Innovation intern at Policy Connect
With advanced manufacturing named a key growth sector in the Government’s strategy, steps are needed to ensure small and medium-sized manufacturers get support to make their growth a reality.
Small and medium-sized enterprises (SMEs) are the backbone of UK manufacturing, making up over 99% of the sector. They lead on innovation, form the basis of supply chains and give UK manufacturing its competitive edge. Yet they’re often sensitive to global disruptions and faced challenges post-Brexit, Covid-19 and Russia’s invasion of Ukraine.
In its recent inquiry, the Manufacturing Commission considered how the manufacturing sector can overcome these challenges.
Improve access to finance and provide support for energy bills
A simpler application process for grant support from funding agencies such as Innovate UK, with streamlined forms, reports and more direct support would alleviate the administrative burden for SMEs working with limited time and resources. Moreover, the British Business Bank should be allowed to make larger direct investments into promising businesses that can crowd-in investment from the private sector.
The UK’s commercial energy prices are amongst the highest in the world, threatening the viability of many manufacturing businesses. The Government should therefore widen the eligibility of the forthcoming British Industrial Competitiveness Scheme to the entire manufacturing sector and bring forward the start date to this year.
Improve industry’s sovereign capability and widen business support
Public procurement strategies are a surefire way to support SME growth by boosting domestic production and building supply chain resilience. The Government should encourage contracting authorities to engage with SMEs when tendering, and hold them to meeting targets for procurement spend.
The UK’s commercial energy prices are amongst the highest in the world, threatening the viability of many manufacturing businesses
SME manufacturers are often unaware of the support available to help scale their businesses. The Government’s new Business Growth Service can help SMEs succeed, alongside the existing Made Smarter programme, which offers digital adoption assistance, and the Help to Grow: Management scheme, which aims to improve leadership skills and productivity. However, more support is needed to ensure that firms have adequate capacity and infrastructure to participate in these programmes.
By removing these barriers, the Government can ensure that the UK’s manufacturing sector has a chance to thrive and deliver on its mission to kickstart economic growth
