Following the release of the latest UK Manufacturing PMI today (1 March), Guy Hodgkinson, partner at MHA, calls for the government to increase R&D investment and create a clear strategy for manufacturing to flourish as we move into 2023:
“It is no secret that rising energy, material and staff costs have overburdened the manufacturing sector in the last year. Although order books remain strong and companies have managed to stay afloat the government seems unwilling to support the sector as it looks to balance the budget.
“Innovation is a proven method for increasing GDP so it is disappointing that the R&D scheme and the super deduction are being reduced (in April 2023). The UK has to again become attractive for investment to stimulate growth.
“For this to happen in manufacturing, the government needs to create stability and develop a clear strategy, against a backdrop of political volatility which has been very damaging to international investment. In the short term manufacturers will have to continue to be resilient whilst making sure they collaborate with as many businesses as possible to ensure the UK maintains its reputation for quality and innovation.”