This note summarises what Prime Minster, Andy Burnham said in the Commons on the direction of Government. A full transcript of his speech is at the end of this page.
Key points from the speech
The highlighted speech has several clear messages for manufacturers though there was little that was new:
• Reindustrialisation is a central Government priority. The speech repeatedly frames future growth around rebuilding industrial capacity across UK regions, not just around services or London-led growth.
• Devolution will shape industrial policy. Manufacturers should expect more decisions on skills, infrastructure, investment and local economic strategy to be pushed to regions, mayors and devolved areas.
• Local industrial strategies are coming back. The Government says it will back local industrial strategies based on priority sectors, with business, academia and government working together.
• Infrastructure constraints are recognised as growth barriers. The speech specifically highlights slow grid connections, high energy costs, weak water infrastructure and poor local transport as obstacles to business investment.
• Energy costs are positioned as a competitiveness issue. The Prime Minister links high household and business energy costs directly to inward investment and growth, which is highly relevant to energy-intensive manufacturers.
• Technical education and skills will be more locally led. Post-16 technical education, work placements and regional skills pathways are presented as tools to support young people into work and meet local economic needs.
• Government wants a “pro-business” and innovation-led economy. The speech references backing start-ups and scale-ups to stay in the UK, and creating stronger links between business, academia and government.
• Public control and place-based investment will be expanded. The Government signals a more active state role in essentials such as transport, housing, water and investment strategy, with the aim of improving productivity and regional resilience.
In short, the message to manufacturers is: Government wants manufacturing and regional industry to be part of its growth agenda, with more emphasis on local industrial strategies, devolved decision-making, technical skills, infrastructure, energy costs and innovation.
Key points on devolution
As you would expect a recurrent theme of the speech was the PM’s devolution agenda which he presented as central to the Government’s growth model. He argued that political and economic power became too centralised, contributing to regional decline, and argued that communities needed more ownership and control to drive growth.
His key points were:
• Power should move out of Westminster so regions and nations can set their own ambitions.
• Greater Manchester was used as the model (no surprise there – see my note on ‘Manchesterism’), with the Prime Minister saying devolution helped turn a former industrial heartland into a faster-growing city region.
• Every place should have access to devolved power, not just existing mayoral areas. Cornwall is specifically offered a devolution deal “with or without an elected mayor.”
• No. 10 North is presented as the mechanism for joining up Whitehall decisions and passing power and resources to regions.
• The PM promised the “biggest redistribution of power” the country has seen.
• New powers mentioned include post-16 technical education, employment support and fiscal devolution, including an overnight visitor levy from 2027–28.
• Devolution is linked directly to reindustrialisation, resilient communities, better transport, local skills, infrastructure and local industrial strategies.
In short devolution is not a side policy, but the main way Government intended to drive growth, rebuild regional industry and give places more control over skills, investment, infrastructure and public services.
Key points from the Q&A following the Speech
The key messages for manufacturers in the Q&A that followed the speech are:
- The PM emphasised that Government wants to back “sovereign” production.
He linked farming, food production and manufacturing to national resilience, saying the UK needs to strengthen domestic productive capacity. - Gareth Snell (Stoke-on-Trent Central – Lab/Co-op) argued that Public procurement should be rewired to support British-made goods and jobs. Snell argued that British food should be served on British plates and homes built with British bricks. The Prime Minister agreed, saying public procurement can do much more to support UK industries and that “social value weighting” can make contracts more likely to go to British-based entities.
- Bill Esterson (Sefton Central – Lab) said that energy costs are damaging industrial competitiveness and need reform. He highlighted high energy costs “crippling” British industry. The Prime Minister agreed that energy costs are “ruinous” for households and businesses, and said grid connection costs and delays are damaging inward investment.
- Jessica Morden (Newport East – Lab) said steelmaking is strategically important and should be protected in South Wales. She raised unfair global trading practices and gaps in steel safeguards. The Prime Minister commited to working with Tata, unions and others, promising to “guarantee steelmaking in south Wales for generations to come.”
- Gareth Snell (Stoke-on-Trent Central – Lab/Co-op) said ceramics and place-based manufacturing should receive stronger support . Others (Leigh Ingham and Linsey Farnsworth) echoed his theme. The Prime Minister said he will defend the Potteries, back world-class local sectors, and help industries transition to future technologies.
- Leigh Ingham (Labour – Stafford), Douglas McAllister (Labour – West Dunbartonshire) and Brian Leishman (Labour – Alloa and Grangemouth) all made points emphasising that reindustrialisation is central to growth outside major cities, especially in towns which need renewed industrial investment. The Prime Minister supported reindustrialisation as a route to “growth in every postcode.”
- Dr Ellie Chowns (North Herefordshire – Green), Douglas Lumsden (Conservative – Aberdeen South), Siân Berry (Brighton Pavilion – Green) and Richard Tice (Reform – Boston and Skegness) all made point on the need for clean energy and industrial transition to create manufacturing opportunities, not decline. Tie argued that energy prices had increased “because of the rush towards net stupid zero and the multiple increase in renewables such as solar farms on our productive agricultural farmland.” The Prime Minister positioned the policy as a pragmatic transition from oil and gas to renewables, saying the UK must avoid repeating past failures of deindustrialisation. He said “we will still need to rely on oil and gas for some years to come. The mistake he [Tice] makes is saying that it has got to be one or the other, for political purposes; the truth is that it is going to have to be both.”
- Douglas McAllister (West Dunbartonshire -Lab) argued that government should buy more from UK manufacturers where possible. The PM agreed. He cited buses and ferries, saying too many are bought overseas when UK manufacturers such as Wrightbus, Alexander Dennis and Cammell Laird could be supported.
Overall, the strongest message to manufacturers was that the Government wants to use public procurement, energy reform, industrial transition and place-based investment to rebuild domestic manufacturing and support British jobs.