REGIONAL REPORT
Image: Make UK.
UK apprentices. A trade discussion at UK Metals Expo.
East is also exacerbating concerns for UK manufacturers over global supplychains, rising inflation and increased energy costs. Industrial power prices in the UK are already the highest in the European continent, four times higher than in the U. S. and 46 % above the global average, warned Make UK in March this year. The prospect of higher consumer price inflation in the months ahead will also weigh further on growth, reported the CBI on 26 March 2026.
“ Recent developments in the Middle East add huge pressures to the sector and risk accelerating de-industrialisation. Whilst [ UK ] manufacturers are leading the way in renewable energy, we must ensure the sector survives in the medium term. Ensuring the UK has access to its own energy reserves is now vital,” said Stephen Phipson CBE( CEO, Make UK) on 13 March 2026. However, the UK manufacturing sector saw stronger growth in January, driven in part by rising demand from the U. S. and China, according to new survey data.
“ Manufacturing output volumes fell in the three months to March, at a faster pace than in February, according to the CBI’ s latest Industrial Trends Survey
( ITS). But manufacturers anticipate output volumes
UK Chancellor of the Exchequer, Rachel Reeves. to be broadly flat in the quarter to June,” said the CBI on 20 March 2026.
“ Manufacturers need to see the UK government delivering the longer-term reforms required to address the UK’ s industrial energy cost disadvantage. This will be critical to reducing the cost of doing business, not only strengthening firms’ ability to invest, grow and create jobs but also mitigating cost-of-living pressures impacting consumer confidence.”
Addressing new opportunities
In her Mais Lecture on 17 March 2026, UK Chancellor Rachel Reeves underlined continued support for key sectors including advanced manufacturing, defence, energy and emerging technologies, alongside ongoing reforms to planning, infrastructure and access to finance. The importance of improving productivity and increasing business investment remained a consistent theme.
There was also a renewed emphasis on regional growth, particularly across major city regions in the North of England, as well as skills and labour market reforms aimed at supporting workforce participation and training. Make UK has been calling on the UK government to commit to a Skills Investment Pledge to address the decline in apprenticeship starts and rise in those not in education, employment or training( NEET). On trade, the Chancellor signalled a more pragmatic approach to the EU, with potential for closer alignment in areas where it could reduce Brexit friction for businesses.
On 26 March 2026, the UK government announced that Port Talbot will be“ at the forefront of a pioneering new clean energy industry, backing thousands of good jobs and driving growth across South Wales,” thanks to a £ 64-million government grant.
“ The new port will help unlock at least 4.5GW of floating offshore wind in the Celtic Sea— helping deliver clean, home-grown electricity, protect
The Chancellor signalled a more pragmatic approach to the EU, with potential for closer alignment in areas where it could reduce Brexit friction for businesses
Image: Shutterstock. com.
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