Specialist Manufacturing Sector: Regional Economies

Rebecca Smith Excerpts

Wednesday 19th November 2025 Westminster Hall

[Rebecca Smith (South West Devon) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Harris. I welcome today’s debate. Plymouth and the surrounding area boast some of the finest examples of British advanced manufacturing. Babcock refits the Royal Navy’s frigates, maintains our nuclear deterrent and assembles the Supacat Jackal armoured vehicles at His Majesty’s Naval Base Devonport. Today, Helsing is opening a resilience factory in my constituency, manufacturing autonomous underwater gliders to protect critical infrastructure. The date was supposed to be last week, so I went to visit. Unfortunately, I am here for this debate today rather than there for the official opening today, but it is an exciting opportunity for my constituency of South West Devon and Plymouth as a whole. The company was attracted to the city because of its easy access to deep water for testing and sea trials of marine autonomy. For similar reasons, Thales at Turnchapel Wharf is delivering the first end-to-end autonomous maritime mine-hunting system to the Royal Navy.

Plymouth’s industry is not just defence companies equipping the men and women in uniform with world-class kit. Mars Wrigley, a company I visited last month, manufactures its chewing gum in Plymouth. Alderman Tooling, another advanced manufacturer in Plympton in my constituency, is a metal fabrication company that produces a range of products, including metal bed feet, bus handrails and displays for museums and fashion retailers. Plessey Semiconductors, Demon Pressure Washers and Princess Yachts are all significant to South West Devon, and many other businesses manufacture in neighbouring Plymouth constituencies.

It should therefore come as no surprise that Plymouth wears the crown as the south-west’s pre-eminent manufacturing city, ranking ninth across the UK. This is within the south-west region, which has the third highest proportion of advanced manufacturing jobs in the country, employing 86,500 people. Indeed, the Plymouth Manufacturers’ Group represents over 50 local businesses right across the city, employing almost 5,500 people.

With the current focus on the defence sector across the country and in Plymouth, it is easy to just focus on the prime companies: Babcock, BAE Systems and Rolls-Royce. However, it is important to also recognise the immense contribution of small and medium-sized businesses to the advanced manufacturing sector—both the defence supply chain and the wider manufacturing sector that populates Plymouth and the surrounding area.

Plymouth’s regeneration is being led by manufacturers, small and large, in our city. Our city’s future success is tied to theirs. The city’s offer is impressive and often overlooked. Our advanced manufacturing sector contributes hundreds of millions of pounds of GVA to the local economy and the country as a whole. Defence in the south-west adds £3.6 billion of GVA, with 43,500 jobs. However, it is well documented that Plymouth has a skills shortage. This in turn risks local growth, social cohesion and cost increases to the defence programme. To unlock Plymouth’s potential, we must meet those challenges head-on.

Recent data has highlighted that as many apprenticeships are needed by local SMEs as by defence primes—something we must be alive to as we promote our manufacturing sector and the skilled employees required. That is especially the case since high wage inflation—something already mentioned—brought about by the demands from the defence primes can impact those critical SMEs that also provide significant numbers of jobs and need to grow their skilled workforce, too.

We are not alone in this reality in the south-west. Recent Transport Committee hearings that I was part of have focused on the skills shortage in transport manufacturing, too. We often hear about welding, but ultimately those welders are needed right across the country in a whole range of jobs. It is very important we ensure that that supply and demand match each other. I am particularly interested to hear how the Minister can address that, because I sit in those meetings hearing about the need for welders, and I am not convinced that there are enough young people out there to fill those jobs, so I am interested to hear the Minister’s thoughts. The need for a laser focus on skills is crucial, and a reality check is needed on the numbers required across all manufacturing sectors to ensure we tackle the demand effectively.

Although I welcome the Government’s defence spending and commitment to Plymouth, I am watching to ensure that their investment also addresses the broader systemic challenges I outlined facing Plymouth’s advanced manufacturing sector. Labour has pursued policies that actively harm our SMEs. The jobs tax is costing small businesses £615 more a year per employee, and the Employment Rights Bill is tying them up in red tape. I hope that the Chancellor is taking a second look at the harm that those policies are causing to small businesses ahead of the Budget next week.

Plymouth is an exciting place to set up a business, with the Plymouth and South Devon freeport providing incentives and a skilled workforce that is growing every day, even with the challenges I have mentioned, all in the most beautiful place in the country to live. It is clearly the place to be to invest and to seek those jobs. My hope is that the Government will help and not hinder the city’s potential.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mrs Harris. I congratulate my hon. Friend the Member for Calder Valley (Josh Fenton-Glynn) on securing the debate. We do not talk nearly enough about manufacturing in this place—I am sure the Minister would agree with that, given his personal commitment and understanding of the sector from his previous role.

I very much enjoyed the speech by the hon. Member for South West Devon (Rebecca Smith). I am sure that parts made in my constituency, at Meighs & Westleys, Goodwin or Mantec, make their way down to her local businesses, but I say gently to her that scaremongering about the Employment Rights Bill is a disincentive to industry and a restriction on our economy. The Bill is not yet anywhere near implementation.

[Rebecca Smith]

Will the hon. Gentleman give way?

[Gareth Snell]

Very briefly, as long as the hon. Lady is going to admit that she is wrong.

[Rebecca Smith]

I am not going to do that. Many businesspeople across my constituency have contacted me to stress how damaging the Bill will be. It seems to be more of an ideological issue on which Opposition Members differ. The red tape, particularly around things like zero-hours contracts, will have a massive impact, but I guess the proof will be in the pudding.

[Gareth Snell]

I am many things, but I have never been called an ideologue. We can have a debate about the Employment Rights Bill on a different occasion, but I suggest that securing the right for people to know what hours they are working does not seem to me like a minimum ask for anybody.

I am glad that my hon. Friend the Member for Calder Valley raised the importance of manufacturing to pride in place. He rightly talked about the valves made in Calder Valley, and he will know that I and my colleagues from north Staffordshire talk quite a lot in this place about ceramics and pottery—I cannot imagine your disbelief, Mrs Harris, but it is true. We talk about that because we are proud of the things that we make. We are proud to know that the tableware in our dining rooms was made by Duchess in Stoke-on-Trent, and the gifts in the Lords gift shop were made by Halcyon Days in Stoke-on-Trent. There are Wedgwood plates, Spode mugs and Burleigh prints all around this building that were made in Stoke-on-Trent.

It is not just Stoke-on-Trent that has a unique commitment and an integral identity connection to manufacturing. Think about the cutlery manufacturers of Sheffield, the jewellery quarter in Birmingham, the shoe manufacturers of Northampton, the knitwear and textiles in Scotland and, of course, the shipyards of Barrow and Belfast—clear commitments to industry that have helped to shape people’s identity. That is why we have to think about what regional investment means. We are proud of the things we make: they contribute to our local economy, which therefore contributes to the national economy. The supply chains need to stretch right across the whole United Kingdom because, as the hon. Member for Strangford (Jim Shannon) says, this is about the nations and regions of this country coming together to do what we all do best in our localities for the greater good of the nation.

In Stoke-on-Trent we do not just make tableware, giftware and ceramics; it is also proudly home to a factory that makes all the cherry bakewells in this country. I did not know she was here this morning, but one of our guests in the Public Gallery works in that factory. The workers there are proud of what they do and their creation of pastry, frangipane, icing and hand-placed cherries.

--- Later in debate ---

[Chris McDonald]

That point is well made. Of course, alongside our industrial strategy, we have our defence industrial strategy. When I come to talk about procurement, I may say more about that, and many hon. Members have talked about defence.

When we talk about our manufacturing sector, it is important to highlight some of the headline statistics. Manufacturing pays higher wages and has generally higher productivity in the areas where it is located and, when it comes to the balance of trade, although around 10% of our employment is in manufacturing, it accounts for around 50% of our exports. Those outputs, jobs and exports consist of thousands of specialist manufacturers, large and small, up and down the whole United Kingdom. Those exports are global and, as we have heard, we also export into space.

On procurement—I know that this area has been a major concern for many hon. Members, and particularly Government procurement—I have great sympathy for the comments of my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell), and I am happy to pursue the specific issues that he raised. I see it as vital to our manufacturing and industrial sectors that we ensure that the money that we as a Government, or our regulated sectors, spend is significant and is concentrated as effectively as possible in the UK, for both its economic and its social value. We need to raise awareness of the opportunities. We must ensure that those opportunities are open to UK manufacturers and that our UK companies are competitive enough to win those contracts. The industrial strategy plays a part in ensuring that those companies can do that.

To increase business investment, we must also ensure that we have a real market opportunity, both at home and overseas. Our clean energy strategy is introducing measures aimed at directly increasing UK beneficiaries in Government procurement. The clean industry bonus for offshore wind, for instance, is designed to encourage investment in Britain’s coastal industrial areas and supply chains. We also want to see robust local content targets. We are examining market demand guarantees to encourage UK scale-ups and introducing a clean energy supply chain fund to support UK-based clean energy manufacturing.

The defence industrial strategy, which I mentioned earlier—the defence industry is, of course, another user of valves—sets out a major reform agenda for procurement to grow our UK industrial base. We will be speeding up procurement processes and reducing bureaucracy, while ensuring greater visibility of defence procurement and taking steps to ensure that small and medium-sized enterprises will have greater access to our supply chains. Our procurement and capital programmes are key to anchoring manufacturing here in the UK and then encouraging businesses to secure investment and export overseas.

UK manufacturing, however, ranks just 24th globally for robotics and automation. Here I move to the topic of productivity, which is of course a key element in profitability and competitiveness. That is an area where, as a nation, we need to work more. If we are not working digitally, we cannot adopt automation and move as fast as our competitors. Our Made Smarter adoption programme, with up to £99 million of additional funding, will help with this. It will support more manufacturing SMEs to take up new technologies and improve their digital capabilities. We have had reference today to the High Value Manufacturing Catapult, which I know from personal experience is a great supporter of improving competitiveness, robotics, automation and productivity in our supply chains.

Skills was also an important feature of today’s debate. They were raised by my hon. Friend the Member for Calder Valley, with his inspiring story of Stuart Billingham —maybe we all need to see more Stuart Billinghams in our lives. The hon. Member for East Londonderry (Mr Campbell) also mentioned regional skills development. I know that persistent skills shortages and the availability of good applicants are a concern felt across our manufacturing sectors. That is certainly an area for Government and industry to work closely together on, to encourage talented people from across the UK to seek jobs in our manufacturing sector. Fort Vale in Calderdale has a strong tradition in apprenticeships, and I understand that it receives over 140 applications each year for the opportunities it provides. That experience of high numbers of applications for apprenticeships is something I see across the country. I applaud the work of the West Yorkshire Manufacturing Services charity and its partnership with Calderdale college on the Industry 4.0 hub, which addresses exactly those digital issues.

[Rebecca Smith]

I mentioned skills as a significant challenge in the defence sector and the additional manufacturing. We have five defence technical excellence colleges opening by the end of next year. How well connected is the Minister’s Department with the Department for Education? Does he have any knowledge of when those colleges will be announced? They are surely a key part of what the Government hope to achieve with defence skills, but they will also be important for regions such as the south-west.

[Chris McDonald]

I welcome those comments. The hon. Member is right to point out that skills is a cross-Government exercise, and that applies not only to defence skills colleges. Work is done across the two Departments I work in—the Department for Business and Trade and the Department for Energy Security and Net Zero—and skills itself resides in the Department for Work and Pensions, which is where it is co-ordinated. Moving skills into that area and having the co-ordination there is exactly right. I also meet Defence Ministers to discuss this issue; many of these skills are transferable across industries, and we want to ensure that people can transfer across from different industries. A couple of weeks ago I launched the clean energy jobs plan, which provides support for people to move out of the oil and gas sector, for instance, and into clean energy industries. I thank the hon. Member for raising that issue.

Our focus on skills includes a new engineering skills package, worth over £182 million, to fund technical excellence colleges in advanced manufacturing. More widely, through the post-16 education and skills strategy, we are introducing wider reforms, including new foundation apprenticeships for young people in target sectors. Our new V-levels will encourage young learners into vocational pathways, and I am sure that hon. Members will have heard the personal priority the Prime Minister placed on this during his speech at the Labour party conference.

Attracting young people into manufacturing is clearly a priority for the sector, and our advanced manufacturing sector plan sets out ways in which we can do that. Wages in the sector are 8% higher than the UK average, which can provide great opportunities for young people. We heard earlier that welders earn even more than that—something that my nephew, who is a welder, also tells me. My welding is terrible, so I was absolutely unable to pursue that as a career. We are also concerned about equalities, and we have a target of 35% representation of women in the sector by 2035.

Young people also value their employment rights, and I should say to the hon. Member for South West Devon (Rebecca Smith) that before I came to this place I ran a small business that had almost all of those employment rights. I understand that small business owners might be concerned, but I can assure them that it is perfectly—[Interruption.]