UK manufacturers urge Budget action to unlock investment

Aaron Blutstein 30 September 2026  

Make UK has welcomed the Government’s focus on advanced manufacturing and reindustrialisation but warned that high energy costs, employment regulation and business rates risk holding back investment.

The manufacturers’ organisation was responding to Chancellor John Healey’s Labour Party conference speech, which highlighted a £300m investment by Rolls-Royce in its UK manufacturing and engineering operations.

Rolls-Royce is investing in manufacturing and engineering facilities across Derby, Bristol, Inchinnan near Glasgow, Rotherham and Ansty in Warwickshire, including new machinery, equipment and facility upgrades to support its civil aerospace and defence businesses. More than £140m is earmarked for Derby and more than £90m for Bristol.

Make UK chief executive Stephen Phipson said the investment would provide a boost to the communities involved and backed the Chancellor’s emphasis on advanced manufacturing.

“The Chancellor made some welcome announcements such as the investment from Rolls-Royce that will be a boost for those local communities,” Phipson said. “He is also right to point to advanced manufacturing as the future. We are world-leading in advanced materials, aerospace, defence technologies and, increasingly, renewable technologies.”

He added that Make UK members were “generally positive” about the government’s commitment to reindustrialisation and were prepared to make investments supporting that agenda.

“Our members are generally positive about this government’s commitment to reindustrialisation,” Phipson said. “They are ready to get on with the job and make the investments that will support the government’s agenda.”

However, Phipson warned that the operating environment remained difficult for manufacturers, pointing to energy costs, employment regulation and business rates as particular concerns.

“However, they are still grappling with crippling energy costs, costly new employment regulation and sky-high business rates,” he said.

The comments come ahead of the Budget on 28 October, which Make UK has described as the “first real test” of the government’s reindustrialisation agenda.

In its submission ahead of the Budget, the manufacturers’ organisation has called for measures to reduce industrial energy costs, reform business rates and address employment costs, alongside faster implementation of the government’s Industrial Strategy.

Phipson said the government now needed to translate its commitment to manufacturing into action capable of supporting investment.

“The government’s warm words will mean nothing to our members if they are not matched by action at the Budget and faster delivery of the Industrial Strategy.”