Britain’s trade union and manufacturing leaders have issued a warning that major international manufacturers are postponing investments in the UK until the Labour Party demonstrates a clear commitment to boosting the industry.
Following Keir Starmer’s landslide victory, the heads of the Trades Union Congress (TUC) and Make UK, which represents 20,000 employers across the UK, have united to urge the government for rapid action to launch a long-term industrial strategy, or risk losing billions in foreign investments.
In a joint interview with the Guardian, Stephen Phipson, the chief executive of Make UK, and Paul Nowak, the general secretary of the TUC, emphasized that placing good jobs at the core of a robust and swift industrial strategy would benefit both employers and workers. Phipson stressed the urgency, saying, “They [the government] have got thousands of things to do, we can see that. But they need to get on with it, because we can see the opportunity.” Nowak added, “Seize the goodwill, people have been waiting. You’ve got a 172-seat majority, now you can take some decisions for the long term, with employers and unions weighing in behind you.”
Prior to the general election, Labour had committed to launching a modern industrial strategy to replace the previous Conservative government’s version, which was scrapped to the dismay of industrial groups. Key elements of the strategy, overseen by Business Secretary Jonathan Reynolds, include relaunching the Industrial Strategy Council, a £7.3bn national wealth fund, and the creation of Great British Energy.
However, Phipson noted that large global manufacturers were delaying investments in the UK until they had more clarity. He mentioned hearing directly from major companies with plans in Spain and Germany, questioning, “But they’re saying, where’s the plan for the UK? Why would I invest until then?”
Both leaders highlighted the need for further reforms and investments in apprenticeships and training as part of the industrial strategy, warning that Britain was at a critical juncture on the road to becoming a greener economy. They pointed to a “perfect storm” of rising occupational ill-health, early retirement, an ageing workforce, and a lack of digital skills required for businesses to adopt new technologies.
The joint intervention comes amid some business leaders’ concerns over Labour’s plans to strengthen workers’ rights, with the Confederation of British Industry (CBI) warning it could impact jobs and growth. However, Phipson stated that Make UK’s position differed from the CBI, as manufacturers generally had good relationships with trade unions and believed that better pay and conditions could enhance productivity.
This unease is also felt on the left of the Labour Party, with some concerned that Starmer’s government might yield too much to business interests. Meanwhile, Chancellor Rachel Reeves has warned that the state of public finances will require further revenue-raising tax and spending measures in the upcoming budget.
A spokesperson for the Department of Business and Trade said: “Our new industrial strategy will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into our economy. It will play a key role to maintain the highest sustained growth in the G7, increasing opportunities for all, and making Britain a clean-energy superpower. We will work in partnership with the private sector to support industries across the whole country.”
0 Comments