Rutland Plastics featured on BBC Breakfast as the Government launched its Industrial Strategy. BBC Breakfast visited Rutland Plastics on 23rd June for a live broadcast to report on the government’s Industrial Strategy and to gauge what an SME manufacturer was hoping for from the paper. We were also joined by Ben Fletcher, COO of MakeUK.
In summary, the Industrial Strategy is a 10-year commitment designed to propel the nation's economy and boost living standards. While acknowledging the UK's strengths in research, innovation, and global trade, the strategy addresses a recent lack of dynamism and the challenges of an unpredictable global trading environment, fragile supply chains, and assertive economic competitors, which have contributed to the cost-of-living crisis.
The core of the strategy focuses on increasing business investment by attracting international capital and encouraging domestic companies to scale up, especially small and medium-sized businesses. It specifically backs eight key sectors (IS-8) with high growth potential, including those at the forefront of the clean energy transition and the tech revolution. The strategy also targets specific geographical clusters across the UK to enhance national productivity, economic security, and environmental goals. Progress will be rigorously tracked through metrics like business investment, Gross Value Added (GVA), employment, wages, productivity, and exports, as well as the emergence of new large homegrown businesses within the IS-8.
To achieve these ambitions, the government will implement a multi-pronged approach. This includes simplifying the business environment by tackling high industrial electricity costs and ensuring timely grid connections, promoting free and fair trade through strong international partnerships, and strengthening economic security via increased defence spending and strategic investments in critical supply chains. Furthermore, the strategy aims to expand access to finance through the British Business Bank and National Wealth Fund, drive innovation with an £86 billion R&D investment, and capitalise on UK data as an economic asset. Enhancing skills and talent through reforms to the education system and a supportive visa framework is also a priority, alongside reducing regulatory burdens by 25% and removing planning barriers for transformative infrastructure projects. The tax system will also support growth, with a commitment to cap Corporate Tax Rate at 25%.
Beyond national initiatives, the strategy emphasises regional growth, with investments in strategic sites, support for local innovation, and renewed partnerships with devolved governments in Scotland, Wales, and Northern Ireland. It also plans to strengthen connections between city regions and clusters to foster collaboration and job opportunities.
Finally, the government is committed to a stronger, more agile partnership with businesses. This involves active co-investment, leveraging government procurement to strengthen domestic supply chains, streamlining government navigation for businesses, and providing enhanced support for small and medium-sized enterprises. The establishment of a permanent Industrial Strategy Council will ensure sustained focus and evaluation of policy effectiveness. This comprehensive strategy aims to place private business, entrepreneurship, and innovation at the heart of the UK's renewal, fostering a collaborative and sustained growth across the economy for the coming decade and beyond.
The intentions are certainly positive, but as is often the case, the real impact will only become clear in the coming years. While the strategy outlines broad benefits, only around 7,000 businesses are initially set to gain from reduced electricity levies.
Regardless of the immediate outcomes, Rutland Plastics remains dedicated to supporting and promoting British manufacturing. As Stuart, our Director, stated during the broadcast, we continually plan for future decades, investing in new equipment and processes to enhance our efficiency and competitiveness. This commitment ensures continued growth and skilled job creation right here in the local Rutland community, of which we are incredibly proud to be a part.
