Further blow for UK growth revealed

19 March, 2025

Poppy Bramford

Also a similar number foresee a drop in recruitment and funding for training, in a further blow to the Government’ agenda for growth, as the latest GDP figures showed the economy shrank in January.

Poppy Bramford (pictured), Senior Policy Manager at Enginuity, the charity dedicated to closing the skills gap, vowed to ensure that the voice of SMEs would continue to be heard, and set out a three-point plan to start a recovery.

Giving a keynote speech at the Leeds Manufacturing Festival, she revealed that intelligence, direct from SME’s (small & medium sized enterprises) in the sector, would prove difficult reading for industry and government alike.

She said: “If government does not listen to firms, there is a risk we will end up with a growth narrative without the policies to back it up – Ambition resource.

“Whilst we can all appreciate that government is faced with tough decisions, ones which will always involve trade-offs to balance the books, it is important that these decisions are made with a full understanding of their impact on business.

“Higher employer National Insurance Contributions, and a lower threshold, means – at least in the short term – less investment in skills and innovation and reduces the appetite to hire, which works in direct contrast to the Government’s intention to drive economic growth.”

The audience was told that it was vital to unlock public and private investment in skills; eradicate constant policy change which fragments the skills system; and ignite passion and excitement in the young as to the rewarding careers on offer to everyone entering manufacturing and engineering.

Bramford said: “Skills England will be the 13th skills agency in the last 50 years. The skills landscape in the UK has been described as ‘a set of institutions, funding mechanisms and levels, inspection regimes, regulatory arrangements, programmes, qualifications, assessment systems, and policies that are in constant flux!”

More than 90% of manufacturing businesses are SMEs feeding the crucial supply chain that keeps major operations running.

The manufacturing sector contributed £217 Billion supporting more than 2.6 million jobs last year.

The Enginuity survey, showed:

97% of respondents expect their employment costs to increase

50% of respondents said they expect to reduce recruitment

51% expect their current workforce to decrease

46% expect their training budget to reduce

Enginuity recently launched the Enginuity Alliance, to give hundreds of small and medium sized businesses a voice, to help inform policy makers about conditions on the ground, and what measures are needed to bring vital improvements.

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