George Osborne certainly has a lot to answer for – UK manufacturing has shrunk twice as fast as other other developed nations since 2000, with more than 100,000 jobs lost.
In a wake of a further budget, a report by the respected think-tank, the Institute of Public Policy Research (IPPR) exposed the steep decline of UK manufacturing by announcing that Britain’s manufacturing base is one of the worst performing of the world’s developed countries.
Output in our once world leading Steel and chemical industries have stagnated during the economic recovery and have seen at least 100,000 jobs disappear in recent years.
The stagnation of ‘foundation industries’ like basic metals, chemicals, wood and pharmaceuticals also threatens the success of the governments plans for a ‘Northern Powerhouse’, with many of those sectors are concentrated in the North, Midlands and Wales.
Some 90% of domestic demand for chemicals and metals come from imports – some of them subsidised by the British taxpayer, up from 40% in the 1990s.
The report suggests that an increase in these core manufacturing sectors of just 1% in UK production would add an extra £2.3 billion to gross output and create 19,000 jobs. So it is clear that there needs to be renewed calls for government action to stop the dumping of steel and other metals on British and European markets by China and Russia.
The report goes on to suggest a number of, seemingly sensible, options to help recovery; The provision of reduced energy costs for steel-makers and other firms, a regional growth fund underspend should be used to boost struggling industries such as aerospace, automobile and pharmaceutical manufacturing and a new ‘right to buy’ for employees to take over firms that are about to close or be sold off.
The later, to my mind, is perhaps the most interesting of these.
You can read the full report here.
The EU doesn’t want nations to exist any more but have all EU countries as one in a Federal Union. We have already lost control of trade and industry in this country and only by leaving the EU can we trade freely world wide without EU regulations crippling us. We use to be a great trading nation once and can be again.
Steady on. I usually support your cause but there is a glaring oversight/error (intentional or otherwise) in this article.
“George Osborne certainly has a lot to answer for – UK manufacturing has shrunk twice as fast as other developed nations since 2000, with more than 100,000 jobs lost.”
Osborne, hopeless though he may be, has not been running the show since 2000. But the consistent factor is that we have been controlled throughout by the EU with 60% of our laws coming from Brussels/Strasbourg. As only 4% of MEPs are batting for the UK it’s hardly surprising that we are in decline.
And to suggest we have any chance of “government action to stop the dumping of steel and other metals” is straight out of Grimm’s Fairytales. Our government is powerless – shackled by the EU.
Good point well made… however in the search for a scapegoat in this debacle Orbourne is as good a candidate as any. 😉
How can one man single handedly ruin British Manufacturing? or did he ?
Does High Tec Japan, South Korea still have Steel plants, Aluminium Extrusion plants, small goods manufacturing or do they use growing countries cheap labour and subsidised steel such as China, Vietnam, Cambodia etc? just a thought….Are we in the UK High Tec?
I agree Chip – Osborne is not fit for purpose but those pulling his strings need to grow a pair and lead us out of Europe for the right reasons – the common market was enough but we just took it too far. As an Island we have prospered for hundreds of years with great relationships through the world and the commonwealth (nice name – Common Wealth).
time to get our house in order before Mr Trump gets into the White House and does it for us!
Hello, I’ve just been watching a film on YouTube called BREXIT. Have you seen it? Here is the link https://www.youtube.com/watch?v=UTMxfAkxfQ0 — I’m not qualified to comment on it, just wanted to tell you about it.
A major reason why manufacturing has dropped is because we can’t even make for ourselves. We have to offer any major contract to the EU through the European Journal and have to substantiate our decision if we choose British over French, Spanish etc.
Even Cameron’s despicable £9 million propaganda leaflet was printed in Germany!
You know what to do on June 23. Our last chance!