‘Much Ado About Nothing’- Healey’s first Budget fails UK manufacturing at the first hurdle, warns CBM

The government’s promise to reindustrialise the UK economy has fallen at the first hurdle, according to the President of the Confederation of British Metalforming (CBM).

Stephen Morley, a manufacturing veteran of more than 40 years, believes the Chancellor missed a critical opportunity to support manufacturers, tackle crippling energy costs and, importantly, create the economic conditions to help industry grow.

He believes Labour missed a golden chance to demonstrate it understands the pressures facing companies on the shopfloor and thousands of management teams on the frontline of the UK economy.

“There is nothing in this Budget that comes close to addressing the challenges facing our members and UK manufacturing in general,” explained Stephen.

“Most disappointingly, there is no meaningful support to tackle the crippling energy costs that we have been campaigning on since 2021.”

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He continued: “While increases in the National Minimum Wage and National Living Wage may be below inflation, they will still add to the cost pressures facing SMEs and businesses across the supply chain.

“For many smaller manufacturers, every additional cost matters, particularly when they are already battling high energy bills, employment costs and an increasingly volatile business environment.”

Whilst the CBM welcomes the government’s talk of growth and reindustrialisation, it has been vocal about demanding the rhetoric turns into practical support to make things happen on the ground.

The organisation, which represents 200 members employing over 75,000 people, is adamant that you cannot expect British manufacturers to invest, expand, create jobs and compete internationally while leaving them exposed to the array of damaging cost pressures they face.

“Leaving meaningful action until the next Budget, whether that is in the spring or later next year, is simply too late for some businesses,” added Steve, who has also called for Burnham to work towards an EU reset.

“Companies are making difficult decisions now. Investment is being delayed, competitiveness is being eroded and businesses, who might otherwise have a future in UK manufacturing, could be lost before the government gets another opportunity to act.”

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“This Budget was a golden opportunity, and the Chancellor has missed it. In footballing terms, it is about as close to an own goal as you can get.

“If Burnham and his team are serious about reindustrialising Britain, they need to start treating manufacturing as an economic priority, not simply talking about it.

He concluded: “‘Much Ado about Nothing’ is a fitting description of a Budget that offered so little to the businesses expected to deliver the growth, investment and jobs this country desperately needs.”

The Confederation of British Metalforming (CBM), which actively lobbies for greater support for downstream companies, represents manufacturers of fasteners, forgings and pressings, cold-rolled and sheet-metal products.

Collectively, members employ 75,000 employees and provide critical components across the automotive, aerospace, defence, energy and nuclear sectors.

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