With only three constituency seats to declare of the 650 in the House of Commons, Labour has won 412 seats (+211), Conservative 120 (-250), Liberal Democrat 71 (+63), Scottish National Party 9 (-38), Green Party 4 (+3), Reform UK 4 (+4), Independent 6 (+6), Plaid Cymru 4 (+2), Sinn Fein 7 (unchanged), Democratic Unionist Party 5 (-3) and other parties five.
The UK will find out how the result impacts manufacturing over the coming months but there has been some reaction to the results from across industry by senior figures.
There are likely to a push for a dedicated Minister for Manufacturing, a clear Industrial Strategy, a focus on engineering and manufacturing skills, support for apprenticeships, help for SMEs, a focus on helping businesses invest in the latest manufacturing technology along with a push for automation.
Balancing act
Among those reacting was Duncan Keates, managing director of Leicester-based ADS Laser Cutting, said: "As the owner of a manufacturing business, some of the biggest challenges we face are linked to finding suitably trained people to join the team – an issue that has been especially hard post-Brexit, and also following the Covid pandemic.
"Balancing increased business costs, including capital investments which are essential to remain competitive, with the cost of recruiting and retaining skilled staff is a key priority for us.
“The new Labour government must, therefore, use its conclusive win to quickly demonstrate its commitment to investing in training and apprenticeships, and overall jobs creation.
“Its pledge to rebuild the UK’s steel industry is something of particular importance to us, but the devil will be in the detail, and we look forward to seeing Labour’s vow to invest £2.5bn in the sector come to fruition. Not only will this drive stability in steel prices, it will also develop our resilience in the face of geo-political events that have added to the recent challenges faced by the sector here in the UK.
“The instability of recent years must now be replaced with a long-term industrial strategy so that British businesses have the confidence to make investment decisions that will increase productivity, result in economic growth and enable workers to enjoy more money in their pockets.”
A lot in the tray
Also among them were, Stephen Phipson, chief executive of Make UK, said: “I congratulate Sir Keir Starmer on leading his party to a decisive victory. Business will welcome such a clear result and an end to the political and economic instability of the last few years which is essential for companies to now bring forward much needed investment. Looking ahead, the new Government has a lot in its in-tray to address.
“First and foremost is the urgent need to kick start the UK’s anaemic growth levels of recent years and, boost investment in our infrastructure, without which we cannot address the many urgent priorities the Country faces at national and regional level. A modern, long-term industrial strategy which tackles the skills crisis in particular will be key to delivering this growth. Manufacturers stand ready to work with the new Government and all stakeholders as a matter of urgency to help deliver this.”
Mike Hawes, SMMT chief executive, said: We congratulate Sir Keir Starmer and the Labour Party on their election success. The new Government’s commitment to an industrial strategy and its already published Automotive Sector Plan can boost manufacturing competitiveness, enhance trade relations and support consumers.
"The industry is fundamental to the achievement of ‘net zero’ which, with the right conditions, will deliver the growth the economy needs. We now look to continue our productive partnership with government to ensure the long-term success of the sector and all those who depend on it for their mobility, services and livelihoods.”
Apprenticeships and skills
Gareth Jones, managing director of In-Comm Training, which provides more than 2500 apprenticeships and upskilling opportunities across its two technical academies in Aldridge and Telford also spoke about the landslide win.
He said: "To be fair to the Conservatives, they did put apprenticeships back on the map and reignite its credibility among learners, parents and employers.
"This was no small feat, but now the baton has been passed to Labour to build on this evolution and there have already been some big promises leading up to this election – widening the scope of the Apprenticeship Levy would be a very welcome move for example.
"Channelling further funding to schools to boost English and Maths standards is the right thing to do. Too often, young people leave without achieving these GCSEs and we have to step in to deliver the functional skills they require to start a pathway into vocational learning. Why should we have to do something in a short period of time that schools haven’t achieved in five years?
"The future of skills provision will be very interesting under the new Government. In recent years, capital grants and funding have been strategically available for the right projects and the right private sector providers, and this has ensured that access to training is more employer-led, impactful and delivering the skills industry actually requires.
"This must be maintained, and we can’t go back to the period where money was just given to public-owned universities and colleges.
"Going forward, Labour’s manifesto states that it will push decisions on skills spend out of Westminster and into local communities to decide what they require, presumably continuing with the theme of devolution.
"We would welcome this as long as the funding is open to the best providers and organisations and not ringfenced for the few.
"Industry requires a long-term strategy to build trust and give companies confidence to invest. To have a strong economy we must be making product - I’ve said it for years, yet many companies are dying with their owners choosing to retire rather than succession planning. We want a strong industrial sector with pathways to jobs for all.”
Support for SMEs
Tony Hague, CEO of PP Control & Automation, one of the UK’s leading strategic manufacturing outsourcing specialists working with 20 of the world’s largest machine builders also commented.
He said: "There was no real surprise with today’s election result. Conservatives have paid a heavy price for many years of ineffectiveness, personified by the Liz Truss mini budget that rocked the economy and left many of us still paying the financial price. After 14 years of the same government, a change was almost inevitable.
"In truth, the current Labour manifesto is fairly central and balanced, albeit the concern of increased taxes is always there.
"From a UK manufacturing perspective, we await with interest what positive steps they may take in the short and long-term. Some relatively easy decisions that could have a big impact, include a revised R&D policy, a review on Corporation Tax and more sustained support for SMEs around export.
"Now the election is over, we must see positive and bold action from the Bank of England, and this should start with interest rate cuts to stimulate the economy and reduce the cost of borrowing.
"Personally, I would welcome some real incentives around the housing market. If we see a strong construction sector, the rest of the economy generally follows.”
Minister for Manufacturing
Stephen Morley, President of the Confederation of British Metalforming (CBM), the leading trade association for UK manufacturers of fasteners, forgings and pressings, cold-rolled and sheet-metal products, also commented.
He said: "It’s only right that we start with congratulations to Keir and the Labour Party.
"My first bit of advice to our new Prime Minister is to stop telling everyone that your dad was a ‘toolmaker’ and your family were poor. This is putting young people off following a career in manufacturing, a career that can be well paid and take you all over the world. We need more toolmakers, designers, quality engineers, procurement specialist and CNC operators and it will give you a good life!
"Like many in our sector, we would love to see a long-term Industrial Strategy that plays to the UK strengths and acknowledges the challenges we face. Ideally, we’d like to see something that is cross-party or has a Royal Charter that ensures longevity regardless of the political persuasion.
"A dedicated Minister for Manufacturing is a campaign the CBM has added our voice to and could be an early win if Labour wanted to show a willingness to place new importance on a sector that drives innovation, supports GDP and creates high-skilled jobs. There must, however, be a clear recognition of SMEs and a desire to look past the B5 lobbying groups, giving a vital part of the economy the recognition it deserves.
"The impact of leaving the EU continues to bring widespread disruption to UK manufacturing, yet not one party in the lead-up put forward a potential resolution. This is something that Keir Starmer needs to address urgently.
"Finally, skills…skills…skills. We urgently need a review of the Apprenticeship Levy and how funding in this pot can be spent. There needs to be more creativity and an ability to allow manufacturers to spend it on different types of technical courses that they specifically need and will create the employees they require.
"There is also an argument that the current funding structure doesn’t encourage training providers to support Level 2 apprentices, which traditionally is what we call foundation Level. We’re all for upskilling, but we’re missing an important rung of the engineering ladder.”
Invest in infrastructure
Davie Carns, CEO of NIS Group, a leading provider of vocational training and employment services for individuals and business in construction, rail and civil engineering, also spoke about the new Labour win.
He said: "Infrastructure, house building, maintenance and repair - these are all huge opportunities for growth for the new Government.
"We would like to see an early statement of intent from Labour to commit to investment in infrastructure and supporting the construction industry.
"But this means tackling the skills challenge in this vitally important sector. A report this week by the Construction Industry Training Board (CITB) forecasts that, in order to stand still on the current pipeline of projects, a further 251,000 extra workers will be needed by 2028 in an industry already employing over 2.5million people.
"NIS Group stands ready to continue playing our part, supporting the construction industry, supporting local communities by providing local jobs and supporting the Government in seeking to grasp these opportunities for growth."
