 | Matt Oliver Industry Editor |
Speaking at Labour’s annual conference last week, Andy Burnham pledged to usher in a “new age of industrialisation” for Britain.
It’s a policy that’s gone down well with the party’s membership and union backers, particularly as the Prime Minister has vowed a bigger role for the state.
Even so, what does more industrialisation really mean? That part, experts say, remains far from clear, and achieving it is far from easy.
As a share of Britain’s economic output, manufacturing has been in decline for decades, having gone from accounting for 30 per cent of all jobs in the 1970s to less than 8 per cent today.
There are powerful structural forces behind this change, not least growing competition from countries such as China and soaring energy costs.
While Burnham and John Healey, the Chancellor, are pledging to reboot British industry, critics say the rest of their economic agenda seems almost perfectly designed to achieve the opposite.
Increases to national insurance contributions, more onerous employment laws and carbon taxes on energy consumption are just a few of the things that have pushed up costs for businesses.
This is why Make UK, the manufacturers’ body, has warned that factories face an “existential threat”.
With my colleagues Szu Ping Chan and Emma Taggart, I asked economists, businesses and experts what they thought about Labour’s plan to reindustrialise Britain. Continue reading ➤ |