A Budget that must deliver for manufacturers

Richard Powell, Partner at MHA, comments on today's S&P manufacturing PMI data, which saw a rise.

The rise in the manufacturing PMI figure is no surprise given the exceptional circumstances of the JLR closure and then restart. While welcome news that the pace of decline has slowed, at below 50, the data suggests a sector still in contraction and does little to alter the malaise that currently hangs over the sector at present. Manufacturing is in a ‘wait and see’, if not ‘wait and anxiously hope’ mode.

Certainly, our clients are telling us that corporate activity and investment is almost at a standstill barring a few transactions being brought forward to complete by 26 November to avoid the implications of potential tax changes that might be introduced in the Budget.

It is hard not to overestimate the importance of the Autumn Budget to the sector. The industry, long considered the backbone of the British economy, finds itself at a critical juncture, from rising costs, global competition, to policy uncertainty. This is a vital opportunity for the government to demonstrate its commitment to revitalising UK manufacturing.

The sector is not asking for handouts, they are asking for clarity, consistency, and commitment. The Chancellor must deliver a framework that enables long-term planning, supports innovation, and restores confidence in the UK as a manufacturing powerhouse.