Three prime ministers, four chancellors and three business secretaries in a year have cost Britain its appeal to foreign investors, say manufacturing bosses.
Members of Make UK, the manufacturing trade body, have in previous surveys blamed the impact of Brexit on trade costs and customs barriers. However, it is the government’s management of the economy since Britain left the European Union that is now angering industrial leaders.
“There is evidence that the political instability of the last 12 months has damaged the competitiveness of the UK as a manufacturing location,”said Make UK of its survey published today.
“The number of companies believing the UK to be a competitive location has halved from last year, down to 31 per cent from 63 per cent.”
Make UK continued: “Over four in ten companies, 43 per cent, believe the UK is now less attractive to foreign investors, while more than half of companies, 53 per cent, believe that political instability is damaging business confidence.”
Investment intentions by Make UK member companies have turned negative for the first time in two years, although the body concedes that this will have as much to do with manufacturers’ single biggest worry, which is increasing energy costs and uncertainty over future bills, as about instability at Westminster.
The government will shortly announce its plans for continuing support with energy bills for businesses.
The survey of 235 senior executives, done jointly with PwC, the accountant, found that two thirds of business owners will be reducing production, headcount or both, irrespective of the government’s energy support package.
The energy risk factor is so prominent in their minds that 60 per cent fear blackouts during the rest of the winter. Of the executives questioned, 13 per cent said that they were considering closing their businesses or introducing shutdowns to save on energy bills, while 11 per cent said they were thinking about moving production facilities to other countries where energy is cheaper than in the UK.
“A potent mix of factors is testing the resolve of manufacturers,” said Stephen Phipson, chief executive of Make UK. “Ongoing supply chain disruption, access to labour and high transport costs that show no sign of abating can be added to a growing sense of economic and political uncertainty in their main markets. The biggest risk, however, remains the eye-watering increase in energy costs, which has the clock ticking for many companies.”
He added: “While an extension of the energy relief scheme will be welcome, to date it has just been a sticking plaster. Making it less generous will make the situation worse for many companies. There is a very strong and urgent case for matching the more generous schemes in place elsewhere if we are to maintain a level playing field and not damage our competitiveness.”
Phipson further warned that without proper targeted support “there are some very significant companies that will fall through the cracks”.
In a separate survey, BDO, the advisory firm, has found that, despite a marginal improvement last month, economic output and optimism remains well below historic levels as a cocktail of factors, including supply chain chaos, high inflation and a looming recession, continues to stall business activity.
According to its latest Business Trends report, low confidence and productivity among UK businesses were to blame for driving historic falls in hiring intentions.
The Civil Service has been working in a complete void of direction for the last three years. Many of the policies and strategies that should be in place simply aren’t.
Everything gets U-turned every five minutes. The Northern powerhouse initiative has been watered down constantly, regional growth hubs went from targeted investments to tax dodges to currently fuck knows what. Land strategy – half arsed and late, farming strategy- half arsed and late, immigration policy – confusing as hell and devoid of an reality. Reaction to energy bills has been all over the place and we are lacking any real plan or strategy for what this modern Britain they keep talking about it meant to look like.
Meanwhile the Minister for Brexit opportunities spent his time feathering his own nest and doing the bidding of his masters in the commercial investment markets harassing civil servants with stupid notes and forcing every department to dedicate thousands of man hours on trying to make a headcount reduction that was never, ever going to work seem plausible without simply giving up on what a department was tasked to do.
In three years of Reece-Mogg his one plan was a moronic and half-arsed idea to reintroduce imperial measurements.
And sadly while the least productive cabinet member, others weren’t far behind him.
it almost like being in the EU, was the only thing keeping this country going, and now we have left, we are falling apart. Under the total incompetence of the Two Party pro Brexit Westminister.
I think it would be more prudent to ask why anyone would bother trying to invest in anything based in the UK given the last decade.
The UK was hardly a great proposition compared to our peers / competitors before the referendum, now it’s absolutely laughable idea after Brexit, our political instability and our ongoing economic failure.
With two years until the next election, we are going to enter a brief stable period, however Sunak has a lot of work to do to undo what Johnson and Truss did. He has to make us look trustworthy and competent again, which is a tall order when he has to keep the far right on the Tories’ side. Even then, with Labour looking OK in the polls, companies won’t want to invest here if they sense a leadership change at the next election. People have forgotten that it was being in the EU, which enabled us to be the financial capital of Europe, that made us attractive, along with being on the doorstep of the largest trading bloc in the world. If Sunak wants businesses to invest here then he needs to show them what we can offer companies that no one else can, something we have failed to do since Brexit.
today would be a good day to release the Russia report.
Of course especially when the opposition is now promising to ‘take back control’ and to ‘make brexit work’.
How must it look to a foreign investor…
“The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”
They’ve squeezed the orange dry. The country is technically bankrupt and all the decent commonwealth assets have been sold of. Time for the locusts to fly somewhere else.
8 comments
Three prime ministers, four chancellors and three business secretaries in a year have cost Britain its appeal to foreign investors, say manufacturing bosses.
Members of Make UK, the manufacturing trade body, have in previous surveys blamed the impact of Brexit on trade costs and customs barriers. However, it is the government’s management of the economy since Britain left the European Union that is now angering industrial leaders.
“There is evidence that the political instability of the last 12 months has damaged the competitiveness of the UK as a manufacturing location,”said Make UK of its survey published today.
“The number of companies believing the UK to be a competitive location has halved from last year, down to 31 per cent from 63 per cent.”
Make UK continued: “Over four in ten companies, 43 per cent, believe the UK is now less attractive to foreign investors, while more than half of companies, 53 per cent, believe that political instability is damaging business confidence.”
Investment intentions by Make UK member companies have turned negative for the first time in two years, although the body concedes that this will have as much to do with manufacturers’ single biggest worry, which is increasing energy costs and uncertainty over future bills, as about instability at Westminster.
The government will shortly announce its plans for continuing support with energy bills for businesses.
The survey of 235 senior executives, done jointly with PwC, the accountant, found that two thirds of business owners will be reducing production, headcount or both, irrespective of the government’s energy support package.
The energy risk factor is so prominent in their minds that 60 per cent fear blackouts during the rest of the winter. Of the executives questioned, 13 per cent said that they were considering closing their businesses or introducing shutdowns to save on energy bills, while 11 per cent said they were thinking about moving production facilities to other countries where energy is cheaper than in the UK.
“A potent mix of factors is testing the resolve of manufacturers,” said Stephen Phipson, chief executive of Make UK. “Ongoing supply chain disruption, access to labour and high transport costs that show no sign of abating can be added to a growing sense of economic and political uncertainty in their main markets. The biggest risk, however, remains the eye-watering increase in energy costs, which has the clock ticking for many companies.”
He added: “While an extension of the energy relief scheme will be welcome, to date it has just been a sticking plaster. Making it less generous will make the situation worse for many companies. There is a very strong and urgent case for matching the more generous schemes in place elsewhere if we are to maintain a level playing field and not damage our competitiveness.”
Phipson further warned that without proper targeted support “there are some very significant companies that will fall through the cracks”.
In a separate survey, BDO, the advisory firm, has found that, despite a marginal improvement last month, economic output and optimism remains well below historic levels as a cocktail of factors, including supply chain chaos, high inflation and a looming recession, continues to stall business activity.
According to its latest Business Trends report, low confidence and productivity among UK businesses were to blame for driving historic falls in hiring intentions.
The Civil Service has been working in a complete void of direction for the last three years. Many of the policies and strategies that should be in place simply aren’t.
Everything gets U-turned every five minutes. The Northern powerhouse initiative has been watered down constantly, regional growth hubs went from targeted investments to tax dodges to currently fuck knows what. Land strategy – half arsed and late, farming strategy- half arsed and late, immigration policy – confusing as hell and devoid of an reality. Reaction to energy bills has been all over the place and we are lacking any real plan or strategy for what this modern Britain they keep talking about it meant to look like.
Meanwhile the Minister for Brexit opportunities spent his time feathering his own nest and doing the bidding of his masters in the commercial investment markets harassing civil servants with stupid notes and forcing every department to dedicate thousands of man hours on trying to make a headcount reduction that was never, ever going to work seem plausible without simply giving up on what a department was tasked to do.
In three years of Reece-Mogg his one plan was a moronic and half-arsed idea to reintroduce imperial measurements.
And sadly while the least productive cabinet member, others weren’t far behind him.
it almost like being in the EU, was the only thing keeping this country going, and now we have left, we are falling apart. Under the total incompetence of the Two Party pro Brexit Westminister.
I think it would be more prudent to ask why anyone would bother trying to invest in anything based in the UK given the last decade.
The UK was hardly a great proposition compared to our peers / competitors before the referendum, now it’s absolutely laughable idea after Brexit, our political instability and our ongoing economic failure.
With two years until the next election, we are going to enter a brief stable period, however Sunak has a lot of work to do to undo what Johnson and Truss did. He has to make us look trustworthy and competent again, which is a tall order when he has to keep the far right on the Tories’ side. Even then, with Labour looking OK in the polls, companies won’t want to invest here if they sense a leadership change at the next election. People have forgotten that it was being in the EU, which enabled us to be the financial capital of Europe, that made us attractive, along with being on the doorstep of the largest trading bloc in the world. If Sunak wants businesses to invest here then he needs to show them what we can offer companies that no one else can, something we have failed to do since Brexit.
today would be a good day to release the Russia report.
Of course especially when the opposition is now promising to ‘take back control’ and to ‘make brexit work’.
How must it look to a foreign investor…
“The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”
They’ve squeezed the orange dry. The country is technically bankrupt and all the decent commonwealth assets have been sold of. Time for the locusts to fly somewhere else.