Britain’s manufacturing sector has experienced a significant decline over the past decade, losing around 200,000 jobs since 2010, according to an analysis of OECD data by the Trades Union Congress (TUC). This represents a 7 percent reduction in manufacturing employment and highlights the challenge facing efforts to rejuvenate the industry under Prime Minister Andy Burnham’s reindustrialisation agenda.
The TUC’s findings reveal that the UK’s manufacturing performance contrasts sharply with that of several major European economies, where manufacturing remains a key driver of growth and employment. The analysis suggests that if the UK had maintained pace with the European Union average, it could have added an estimated 276,000 manufacturing jobs over the same period. Currently, manufacturing accounts for about 10 percent of the UK’s gross domestic product (GDP), but investment in the sector has shrunk to just 1 percent of GDP, compared with 3.5 percent across the EU.
Paul Nowak, the TUC’s general secretary, has called on Prime Minister Burnham and Chancellor John Healey to implement measures aimed at encouraging the production and consumption of British-made goods. He urged the government to introduce policies similar to the EU’s proposed Industrial Accelerator Act, a protective scheme designed to shield European manufacturers under its “Made in Europe” initiative. Healey recently appealed to European finance ministers to allow the UK to participate in this scheme.
While economists generally caution that trade restrictions can harm industries over the long term, some acknowledge that tariffs and protective measures may provide critical support to emerging sectors in their early development stages. Manufacturing industry representatives have expressed similar views, emphasizing the sector’s role in the wider economy. Verity Davidge, director of policy and public affairs at Make UK, noted that manufacturing supports 2.6 million jobs and contributes 42 percent of the country’s exports, stressing that economic revival is unlikely without a strong manufacturing base.
Ahead of the upcoming budget announcement on October 28, manufacturing trade bodies have urged the government to clarify and expand on the prime minister’s reindustrialisation plans.
In response, a government spokesman underscored the importance of manufacturing to the UK’s economic success, highlighting ongoing industrial strategies and support for key sectors such as chemicals, ceramics, steel, and automotive manufacturing. The government also pointed to recent substantial private investments, noting announcements by companies including Nissan and McLaren involving hundreds of millions of pounds.
The ongoing dialogue underscores the complexity of balancing open trade with domestic industry support, as policymakers seek ways to strengthen the UK’s manufacturing base amid evolving global economic conditions.
