Industry Reacts to UK Government Spending Review

19 June, 2025

Stephen Phipson, Chief Executive of Make UK, the leading voice of UK manufacturers, described the review as a “delicate balancing act” for the Chancellor. With public finances under pressure and the economy treading uncertain waters, the government’s attempt to maintain fiscal credibility while supporting key sectors is being closely scrutinized by business leaders.

“There is a welcome boost for defence, science and technology, and investment in local transport outside London and the South East,” Phipson said, emphasizing that these areas are critical to “boost growth in the Regions where manufacturers are such a crucial part of the economy.”

The nod to regional infrastructure is seen as a positive step by many in the sector. Yet, the real anticipation surrounds the forthcoming industrial strategy—a long-awaited framework that, Phipson says, must go beyond ambition and deliver concrete support.

“Industry needs a funded and joined-up long-term vision as a matter of urgency for stability and investment,” he stated. The demands are clear: action on two long-standing pain points—crippling industrial energy costs and an acute skills shortage.

“These are not marginal issues,” Phipson warned. “If the Government delivers on these two issues, it would be genuinely game changing for the competitiveness of, and growth prospects for, manufacturers and the economy.”

As manufacturers watch for further detail, one thing is certain: the government’s ability to convert intent into impactful industrial policy could determine the trajectory of the UK’s manufacturing base for years to come. The Spending Review may be a prelude—but the real economic performance will depend on what follows next.

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