Conservative MPs are urging the prime minister to give tax breaks to manufacturing companies, as part of the government’s attempt to “level” the country.
They say manufacturing provides well-paying jobs, and the success of companies like Nissan shows the industry has a bright future in the UK.
North West Durham MP Richard Holden is among those supporting the proposal, presented in a new report from the center-right think tank Onward.
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He said people working in northern manufacturing tend to earn more than the average employee.
Onward’s report, titled Making A Comeback, states that median employees in the Northeast working in manufacturing earned 22% more than the average worker in 2018, while in the Northwest it was 19%. in addition – a premium of over £ 2 per hour. .
The manufacturing sector holding a larger percentage of the ‘red wall’ seating market – parts of the North and Midlands of England, as well as North Wales, where the Prime Minister has won seats in the traditional heart Labor in the 2019 election – the think tank called on the government to invest in the industry to support wage growth outside the capital.
A new analysis in the document shows that 12.2% of workers in seats won by the Conservatives in the last general election work in manufacturing, up from 9.3% of the seats they held in the 2017 election and 7 , 8% among the Labor seats.
For regions outside London, productivity is a fifth higher in manufacturing than in the economy as a whole, according to the report, with around 40% of productivity growth in the West Midlands, the country of Wales and the North West between 1997 and 2017 from the area.
The document – backed by 65 Tory MPs – calls on ministers to put in place tax incentives for capital investments, take action to reduce industrial electricity costs and ensure better 5G connectivity for smart factories.
Its authors also seek long-term funding for research and development institutions in the field of manufacturing.
The surge comes after thousands of jobs have been created and created following announcements of investments in electric car technology in recent weeks at Vauxhall’s Ellesmere Port plant in Cheshire and at Nissan in Sunderland.
Richard Holden said, “Onward’s manufacturing report provides a clear plan for the future.
“For too long, we have simply accepted deindustrialization as inevitable. This is not the case.
“Moving upmarket requires skilled jobs in the private sector.
“To get them, we need a plan to drive manufacturing growth and have the ambition to achieve fundamental transformation. This report gives us an overview of how to get there.
Will Holloway, Deputy Director of Onward, said, “Manufacturing is important because it provides a well-paid, safe and skilled job. This is especially true in the lagging areas of the country.
“In recent weeks, manufacturers like Nissan, Rolls-Royce and JCB have made welcome announcements of new jobs and additional investments.
“Ministers should build on these successes to create a manufacturing renaissance in the UK. “
Verity Davidge, policy director of the industry body Make UK, the body representing manufacturers, said: “Today’s results show that the UK manufacturing sector has an important role to play in stimulating and rebalancing of our economy in the months and years to come.
‘The key to achieving this will be ensuring that the government’s upgrading program focuses its investments on sectors that create good, stable jobs and fuel local economic growth – this means putting the needs of the UK manufacturing sector first. in our different regions.
“A national manufacturing plan to move this project forward is the right step to ensure sustained economic growth over the next decade. “
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