Make UK urges bold national resilience strategy

The head of Britain's manufacturers is urging the Government to collaborate more closely with businesses to create a fresh national vision focused on resilience, which would encompass both economic and defense security.

In his address at the National Manufacturing Conference in London, Stephen Phipson, Chief Executive of Make UK, will emphasize that a robust enhancement of this vision is crucial for the UK to effectively navigate a swiftly changing geopolitical environment and the rapid pace of technological advancements.

He will call on the Government to adopt a more ambitious and urgent approach in four vital areas: industrial strategy, energy, skills, and defense. Phipson will argue that prompt and decisive actions are essential not just for stimulating economic growth, but also for protecting the UK’s broader economic and national security interests.

Key recommendations for the Government include:

• Developing a new national strategy for resilience
• Accelerating the implementation of the Industrial Strategy
• Confirming by summer that the proposed business energy support scheme will be expedited and extended to manufacturing
• Announcing by summer that £1 billion of unspent levy funds will be allocated for skills and training as part of a more ambitious apprenticeship reform
• Publishing by summer a roadmap to boost defense spending to 5% of GDP

In light of the need for stronger growth and a revitalized national vision, Stephen Phipson is expected to state:

The ongoing uncertainty sparked by yet another tariff announcement last week perfectly illustrates the turbulence we're experiencing as we move toward a new world order. So far, the Government has managed to navigate a tricky political landscape, balancing relations with the US, working to improve ties with the EU, and mending a more positive relationship with China. Each of these relationships is vital for our trade and prosperity, and we’re collaborating closely with the Government to ensure all our trading connections remain strong.

In this new world we find ourselves in, it’s crucial to reset our relationship with the EU. This goes beyond just tearing down trade barriers; it’s about fostering a positive and mutually beneficial relationship at every level. The world has shifted dramatically, and both the Government and businesses need to be vocal about why this matters for growth and job creation. We need to pick up the pace in delivering the changes the Government promised. The Government has claimed that growth would be its top priority, but we haven’t yet seen any real evidence of progress. Consequently, businesses are looking for the Prime Minister and Chancellor to take bolder steps in their economic ambitions.

To tackle the significant challenges ahead, I believe we need a fresh national vision rooted in resilience and security, one that brings together both Government and business. This vision would enhance our economic security, which in turn strengthens our national security.

There’s also a pressing need to speed up the delivery of the Government’s Industrial Strategy. Stephen Phipson is expected to emphasize that this strategy is one of the administration’s key commitments to stimulate economic growth, both nationally and regionally.

He will say:

“This is one of the most significant commitments the Government has made, and it’s crucial for driving economic growth both nationally and regionally. However, while we’ve seen some progress in certain areas, some Departments are picking up the pace faster than others. There’s a real risk that we’re missing the mark at a time when businesses are looking for clear signs that the Government is ready to step on the gas.

“To really pick up the speed, it’s essential that the Industrial Strategy Advisory Council takes on a stronger role in holding the Government accountable and reporting on progress and delivery. This will help ensure that the UK can position itself in the fast lane for attracting both domestic and international investment, especially when we need it most to fuel growth.”

Warning over ‘existential threat’ from industrial energy costs

On the topic of industrial energy costs, Stephen Phipson will caution that the UK’s high energy prices pose a serious threat to the long-term competitiveness and future of the manufacturing sector.

He is expected to say:

“While the energy support scheme announced last summer is a step in the right direction, it’s like bringing a peashooter to a gunfight. Since then, the Government has been slow to act, which doesn’t reflect the reality that energy costs are a real existential threat to the future of this sector.

“The clock is ticking, and 2027 is far too late for this scheme to kick in. We need to broaden its scope to cover the entire manufacturing sector. Make UK has provided independent modeling on how this scheme could be funded, and I’m now urging the Government to speed up the rollout and expand its scope by this summer at the latest.”

Fresh push for skills reform and apprenticeship funding

Stephen Phipson will also emphasize the urgent need for reforming the Apprenticeship Levy, warning that any delays could jeopardize a generation of young people and weaken the future talent pipeline for the industry.

He’s expected to say:

“Right now, over £1 billion in revenue from businesses aimed at skills development is sitting unused, which feels like an extra tax on companies that are trying to invest in training. By summer, the Government should really commit to setting aside funds from the Growth and Skills Levy and the Immigration Skills Charge, which could lead to thousands of new apprenticeships.

“Many of you might recall when we were told that the Apprenticeship Levy would be a win-win for those investing in apprenticeships. Yet, here we are a decade later, and manufacturing starts have plummeted by forty percent, while shockingly, nearly one million young people are out of education, employment, or training. This is a lose-lose scenario that risks trapping a whole generation of young people, and we simply can’t let that happen. We’re ready to collaborate with the Government as a sector to find solutions that will open up fantastic career opportunities for young people.”

Make UK urges faster increase in defence spending

On the topic of defence, Stephen Phipson will urge the Government to accelerate its plans to boost defence spending to 5% of GDP, arguing that the current pace is too slow given the UK’s NATO obligations and the changing global security landscape.

He will say: “Investing in defense is crucial for driving growth and developing high-level skills, particularly in parts of the UK that really need it. The long-awaited Defence Investment Plan is already shaking confidence in the sector, causing delays in investments and the flow of private capital. It’s essential that this gets announced as soon as possible, while the Government should also look into other financial avenues to enhance defense spending. The Prime Minister was spot on at the recent Munich Conference when he committed to collaborating with European partners on joint procurement to strengthen our defense industrial base. European nations shelled out £380 billion on defense in 2025 and are ramping up their spending quickly, yet less than 20% of procurement is done jointly.” The Make UK National Manufacturing Conference is set to take place at the QE2 Centre in Westminster on Tuesday, March 3. Check against delivery.