Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to support the UK’s manufacturing sector.

The UK is one of the largest manufacturing nations, ranked 9th globally by output, and manufacturing contributed £173 billion of GVA to the UK economy in 2020. The sector plays a vital role in the UK economy through innovating (accounting for 61% of all business expenditure for UK research and development), exports (46% of total UK exports) and job creation (supporting 2.6 million jobs).

As such, the Government recognises the importance of UK manufacturing and is committed to its continued development as a strong, vibrant and diverse sector. Although decisions about investments and job creation are ultimately a matter for individual private enterprise, the Government has provided funding for strategically important manufacturing subsectors: leveraging billions across the renewables supply chain; backing Britain’s automotive sector through new Gigafactories; and onshoring new offshore wind manufacturing to the UK.

Furthermore, we continue to focus on improving the long-term competitiveness and productivity of manufacturing by investing in research & development, skills and support for digital technology through initiatives such as Made Smarter, Help to Grow and the High Value Manufacturing Catapult.

In addition, the Government is encouraging companies to invest in productivity-enhancing plant and machinery. Manufacturing businesses can benefit from the super-deduction, which allows companies to claim 130% capital allowances on qualifying plant and machinery investments, as well as the extension to the Annual Investment Allowance to 31 March 2023 at its higher level of £1 million.