Calls to Reduce Costs So Manufacturers Can Hire

By the Editorial Team · Sunday, September 20, 2026

UK manufacturers, led by Make UK, have urged the government to address high industrial energy costs and labor expenses that are limiting their ability to hire new workers ahead of the upcoming Budget. The industry warns that without targeted financial relief, efforts to boost manufacturing growth and regional economic balance may falter despite government commitments to support the sector.

Manufacturers in the United Kingdom have called on the government to prioritize reducing cost pressures that they say are hindering their ability to hire new workers. In advance of next month’s Budget, the industry group Make UK highlighted the need for action on the country’s high industrial energy costs, describing them as “uncompetitive” compared to other markets.

Stephen Phipson, chief executive of Make UK, urged the government to translate its broad economic ambitions into concrete support for the manufacturing sector. He said the upcoming Budget would serve as the “first real test” of the government’s reindustrialization agenda, which aims to promote growth and economic balance across regions. Phipson emphasized that manufacturers do not require additional promotional initiatives but rather relief from the financial obstacles that currently limit hiring, investment, and expansion.

Specifically, Make UK recommended capping increases to the national living wage at 3.7% and postponing the planned extension of the wage increase to 18-year-olds, arguing that these measures could ease labor cost pressures and support employment growth in the sector.

Responding to the calls, a government spokesperson reaffirmed the administration’s commitment to supporting UK industries, which the government regards as central to national economic success. The spokesperson highlighted existing efforts to reduce business expenses, including strategies to lower electricity costs for industries across Great Britain. They also pointed to recent announcements of additional support targeted at the chemicals and ceramics sectors as examples of the government’s modern industrial approach.

The dialogue underscores the ongoing challenges faced by UK manufacturers amid the broader push for economic recovery and regional development. While the government stresses its efforts to reduce operational costs, industry leaders maintain that further immediate steps are essential to enable manufacturers to expand their workforce and invest confidently in growth.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.