Specialist Manufacturing Sector: Regional Economies

Rebecca Paul Excerpts

Wednesday 19th November 2025 Westminster Hall

[Rebecca Paul (Reigate) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Harris. I congratulate the hon. Member for Calder Valley (Josh Fenton-Glynn) on securing this critical debate, which is very timely, given the forthcoming Budget. I acknowledge the very pertinent point that he made about the importance of apprenticeships for the specialist sector more broadly.

The specialist manufacturing sector is one of those quiet national assets that rarely make front-page news but keep our economy alive. Its contribution to the UK is not abstract but is counted in highly skilled jobs, export strength and clusters of high-value industry. According to the latest figures, advanced manufacturing now accounts for more than 900,000 jobs across the UK and contributes more than £90 billion in gross value added to the economy. I am pleased that the Government’s industrial strategy recognises the reality of advanced manufacturing’s value, which is spread across the country. I welcome the emphasis that they are placing on specialist manufacturing, as it is clear that the industry offers Britain a comparative advantage in our trade with the rest of the world.

The sector gives our communities certainty. I see that in my constituency, where we host a range of high-value specialist manufacturers whose work speaks directly to the issues raised in this debate. One such firm is Respirex International, a world-leading manufacturer of chemical, biological, radiological and nuclear protective equipment, including gas-tight suits, respirators and chemically protective boots. Its products are not only exported worldwide, but used by emergency services and pharmaceutical and nuclear facilities across the UK, protecting lives in some of the most hazardous environments imaginable.

We are also home to Risbridger Ltd, established in 1922—an engineering company producing advanced components for aircraft servicing and petrochemical infrastructure. It contributes directly to aerospace and energy supply chains. That is exactly the kind of innovative, precision-focused industrial capability that we should champion as part of Britain’s economic future.

In Reigate and across our country, specialist manufacturing has always pulled in long-term capital because it deals in long-term capability. In 2025, the sector counted some 2,700 active companies, and the Government aim to increase annual business investment from £21 billion to £39 billion by 2035. That ambition matters, because regions such as the north-west already generate £14.4 billion in advanced manufacturing GVA. The west midlands generates £11.8 billion and the south-west generates £10.4 billion. Those are not marginal numbers; they are proof that British engineering remains globally competitive when it is backed properly.

Defence manufacturing is a genuine force multiplier. The Ministry of Defence estimates that the sector supports 200,000 jobs, with 70% of spending flowing to areas outside London and the south-east. Indeed, aerospace and defence manufacturing are particularly strong drivers of regional growth. Employment in the advanced manufacturing sector in Northern Ireland has grown more than four times faster than the UK average, while areas such as north Wales remain world renowned for aeroplane wing production. In Glasgow, specialist shipbuilding and satellite technology lead the charge.

Woven together in often complex supply chains, the specialist manufacturing sector demonstrates how fragile business ecosystems can be and why they need the Government’s support. But I must say, with deep regret, that the sector has received nothing of the kind, despite the Government’s lengthy blueprint earlier this year, which rightly identified eight key sectors as strategic priorities: advanced materials, agritech, aerospace, automotive, batteries, space, defence and maritime capabilities. But of course a strategy is only as good as its implementation, and manufacturers are seeing not policy support but punitive tax hikes, cost pressure and legislative risk.

As the hon. Member for Calder Valley and many others said, it would be fantastic if we used more British parts in the UK, but we do not because of the cost. To address that, we must bring energy prices and tax down; warm words in this Chamber will not do it. Since their very first Budget, the Government have inflicted a barrage of attacks on manufacturing businesses. The spiralling uncertainty pouring out under the door of No. 11 is damaging the confidence of every business, but especially the specialist manufacturing sector, and the warning lights are flashing.

Make UK reports that manufacturers’ operating costs have risen sharply, driven by energy prices, the Chancellor’s job tax and uncertainty around business taxation: 68% said that costs rose faster than expected, and more than half froze recruitment as a result. If specialist manufacturers are to keep delivering regional growth, energy competitiveness and a stable tax policy are not luxuries; they are prerequisites.

Let us consider the UK’s industrial electricity prices, which are now estimated to be 40% to 50% higher than the International Energy Agency median for comparable industrial nations. Make UK has gone as far as to call energy costs an “existential threat” to many specialist firms. The consequences are already here. UK steel and chemicals output has dropped 35% compared with 2021 levels, while imports of those same materials are rising. Just yesterday, we heard that ExxonMobil is closing its plastics refinery in Mossmorran. Four hundred jobs are now at risk because of what the company called the

“current economic and policy environment”.

I am confident that in a moment the Minister will rise to spin away any criticism, but this is indefensible.

The reality is that no Government that are serious about the future of advanced manufacturing in Britain would have imposed a jobs tax and changes to national insurance thresholds that hurt hardest those who employ the most. No Government who care about British advanced manufacturing firms and British workers would ignore energy costs that are four times higher than those of our competitors. No Government who believe in the future of our advanced manufacturing industry would introduce a 330-page unemployment rights Bill with job-destroying, hiring-freezing measures from cover to cover. No Prime Minister who wants to kick-start economic growth would look advanced manufacturing business in the eye and say that he has a done deal with the United States and then leave the industry in the dark as tariffs on items such as pharmaceuticals remain for months afterwards. And no Government who say they want to build skills would abolish level 7 apprenticeships.

Just as night follows day, the Government will talk big on business, but their actions show that much of it is merely empty rhetoric. Our specialist manufacturing sector deserves better; it deserves a Government who stand with them, and leadership that understands that when specialist manufacturing succeeds, Britain succeeds. We have in this country the expertise, the heritage and the industrial DNA to compete and excel, but the specialist manufacturing sector will not survive on pride alone. It needs certainty, cost stability and a Government who truly get what it means to make things. We urgently need to reclaim our status as the nation that builds, and the best way to start is by listening to those firms that still do so.