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COP 26: UK "lacks plan for manufacturing" says industry group
26 October 2021
THE UK GOVERMENT lacks a clear and detailed plan to get the manufacturing sector on a more sustainable pathway. SMEs, in particular, need additional help.
Following the release of the government’s Net Zero Strategy on 19 October, and with less than a week to go until the 2021 United Nations Climate Change Conference (COP26), Chris Barlow, head of manufacturing at MHA, a consortium of accountancy firms, says the UK government still lacks a clear and detailed plan to get the manufacturing sector on a more sustainable pathway and SMEs in particular need help: “UK government strategies, including the latest ‘net zero’ one, have good headlines and sensible objectives but offer no defined route as to how me might achieve those goals. We’re lacking detail and many within the sector would say that there still isn’t a real industrial strategy.
“International competitiveness is of critical importance here: the government is highlighting new technologies, skills and materials within industry that are low carbon and sustainable as a way to ‘build back greener’ but so is every other major economy. We need to make sure that our strategy and its supporting frameworks and incentives have greater clarity, long-term credibility and much easier access and attractiveness than previously, and our strategy needs to be better than that of other governments – let’s be clear, hyperbole simply won’t cut it here.
“Overall we need a strategy that defines the key policies behind the headlines. Crucially we also need to know how the UK’s manufacturing sector can benefit from the opportunities stemming from the significant investment to create a ‘green’ industrial revolution that has been promised, to fund training, jobs and technology.
“British SMEs in particular need support. Government is already seeking Net Carbon Zero pledges and associated plans within their own procurement activities for contracts over £5m. While such criteria may not affect too many SMEs there will be a knock-on effect in that those seeking to fulfil such contracts will seek supply chain reductions also. In addition to the government many OEMs also have such pledges and again are actively engaging with their SME supply chain for their own reductions. We need further tax incentives for SMEs to promote innovation and R&D tax relief needs to increase to mirror the changes to corporation tax rates.
“It is the job of businesses to manage their risks and opportunities; they need to understand that lower carbon and increasing sustainability is coming and that if they don’t act then ultimately they will struggle. On the other hand, it is the government’s job to provide the industrial strategy, financial instruments and vision for the future of our industries in a low carbon economy and it needs to step up.”
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