The head of Britain’s manufacturing lobby urged the government to work with industry to develop a new national vision for resilience combining economic strength with defence security, warning that the UK must respond more decisively to a rapidly changing geopolitical environment.
Speaking at the National Manufacturing Conference in London, Stephen Phipson, chief executive of Make UK, said a broader strategy linking industrial policy with national security was essential if the country was to meet the challenges posed by global instability and accelerating technological change.
Phipson argued that the government needed to be far bolder in delivering its economic agenda, particularly on industrial strategy, energy policy, skills and defence spending. He said there was “no evidence of the dial being shifted” on growth despite ministers having previously described economic expansion as their central mission.
He also warned that delays to reform of the apprenticeship levy risked damaging prospects for younger workers. Phipson called on ministers to release £1bn of unused skills funding currently held by the government so that manufacturers could expand apprenticeship opportunities and help tackle youth unemployment.
“Without decisive action we risk condemning a generation of young people,” he said, noting that manufacturing apprenticeship starts had fallen sharply over the past decade.
Energy costs were another central concern. Phipson described the UK’s industrial energy prices as “hideously high” and warned they posed an existential threat to the sector. While a proposed business energy support scheme had been welcomed, he said it needed to be accelerated and extended across the entire manufacturing sector rather than introduced gradually from 2027.
The Make UK chief also urged ministers to set out a roadmap for increasing defence spending to 5 per cent of GDP, arguing that the current timetable extending to 2035 was too slow given NATO commitments and rising geopolitical tensions.
He said global trade tensions and shifting alliances had underscored the need for a clearer long-term strategy. Maintaining relations with the United States, improving ties with the European Union and restoring a constructive relationship with China were all essential to the UK’s economic future, he argued.
Phipson also called for faster progress on the government’s industrial strategy, warning that uneven delivery across departments risked undermining confidence among businesses and investors.
Strengthening the role of the Industrial Strategy Advisory Council could help hold government accountable for delivery and ensure the UK remained competitive in attracting both domestic and overseas investment, he said.
On defence, Phipson argued that higher spending would not only strengthen national security but also drive economic growth and create high-skilled jobs across the country. He warned that delays to the Defence Investment Plan were already damaging confidence in the sector and slowing private investment.
