Make UK/BDO annual survey shows increase in contribution of manufacturing to North West economy

A new report from Make UK, the manufacturers' organisation, and accountancy and business advisory firm BDO LLP shows that manufacturing is increasingly important to the success of the economy in the North West of England, with the sector accounting for 14.4% of the Region's output in 2022, up slightly from 14% in 2021 and significantly above the national average of 9.8%.

According to the report, which analyses the contribution of manufacturing to the North West economy, industry has seen has seen a growing recovery as the Region's strengths in aerospace and automotive, which took longer to recover from the pandemic, have finally picked up and, combined with the other sector strengths in chemical and pharmaceuticals are driving growth across the North West.

3 sub sectors dominate manufacturing output in the North West accounting for almost half of manufacturing output. The chemicals sector is the largest at 16%, followed closely by transport (largely aerospace and automotive) which accounts for 15.8% while pharmaceuticals is at 13.5%.

The North West continues to be a strong export performer, accounting for 9% of the UK's total goods exports in 2022, with the share of exports going to the EU at 50%, just below the UK average of 52%. The next largest destination for North West goods is Asia and Oceania, accounting for 17% of exports. This is followed by North America which accounts for 16% of exports.

Commenting, Dawn Huntrod, Region Director for Make UK in the North, said:- "Industry remains critical to the growth of the North West economy, providing high value, high skill jobs and aiding the process of levelling up. To build on this position we need a national industrial strategy which encompasses local growth strategies which fit with the priorities and strengths of the Region including infrastructure, innovation and skills in particular."

Graham Ellis, Head of manufacturing at BDO in the North West added:- "The North West continues to play a hugely important role in the UK's manufacturing ecosystem. The sector has shown great resilience over the last year, overcoming the multiple challenges thrown up by Brexit, shortages in skilled labour, Pandemic related supply chain delays and the huge energy price rises we have seen following the Russian invasion of Ukraine. While everyone is hoping for some respite, the headwinds show no sign of abating. With high inflation and interest rates continuing to rise, manufacturers will need to remain alert, responsive and resilient in the face of any future geopolitical or economic shocks."

LGA sets out 6 point plan for:- "generational step change" in Council house buildings

EVERY area in England should be handed a new local housing deal by 2025 which combines funding from multiple national housing programmes into a single pot to spark a:- "generational step change" in Council house building, the outgoing Chairman of the Local Government Association says.

Cllr James Jamieson, whose 4 year term as LGA Chairman ends at the start of its Annual Conference, in Bournemouth, 4 July 2023, is setting out a 6 point plan to deliver on Council ambitions that could, over time, support the delivery of 100 more Council homes in every Local Authority per year.

Over recent decades, construction of new homes has failed to keep pace with population growth and social changes. At the same time, there are currently not enough affordable homes to meet current demand with more than 1.2 million households on Council waiting lists in England and over 100,000 households living in temporary accommodation.

This housing shortage has seen rents and property prices rise significantly faster than incomes, acutely impacting the lowest income and vulnerable families and individuals.

Recent Government measures to lift the housing borrowing cap, enable Councils to receive preferential Public Works Loan Board borrowing rates and allow Councils to keep all Right to Buy receipts for 2 years are positive steps in the right direction to boosting the supply of social housing.

The LGA said more needs to be done to rapidly build more genuinely affordable homes to help families struggling to meet housing costs, provide homes to rent, reduce homelessness and tackle the housing waiting lists many Councils have.

It is calling for the Government to go further and faster in order for Councils to be able to properly resume their historic role as a major builder of affordable homes by implementing a 6 point plan for affordable housing.

Roll-out five-year local housing deals to all areas of the country that want them by 2025; combining funding from multiple national housing programmes into a single pot. This will provide the funding, flexibility, certainty and confidence to stimulate housing supply, and will remove national restrictions which stymie innovation and delivery.

Government support to set up a new national Council house building delivery taskforce, bringing together a team of experts to provide additional capacity and improvement support for housing delivery teams within Councils and their partners.

Continued access to preferential borrowing rates through the Public Works Loans Board (PWLB), introduced in the Spring Budget, to support the delivery of social housing and local authorities borrowing for Housing Revenue Accounts.

Further reform to Right to Buy which includes allowing Councils to retain 100 per cent of receipts on a permanent basis; flexibility to combine Right to Buy receipts with other Government grants; the ability to set the size of discounts locally; and the ability to recycle a greater proportion of receipts into building replacement homes paying off housing debt.

Review and increase where needed the grant levels per home through the Affordable Homes Programme, as inflationary pressures have caused the cost of building new homes to rise, leaving Councils needing grant funding to fund a larger proportion of a new build homes than before.

Certainty on future rents, to enable Councils to invest. Government must commit to a minimum 10-year rent deal for Council landlords to allow a longer period of annual rent increases and long term certainty.

Cllr Jamieson, said:- "Housing is too often unavailable, unaffordable, and is not appropriate for everyone that needs it. The right homes in the right areas can have significant wider benefits for people and communities and prevent future public service challenges and costs. Addressing the chronic housing shortage must be a national priority. Our six-point plan would lead to a generational step-change in Council house building and give local Government the powers and funding to deliver thousands of affordable homes a year– at scale, and fast. A genuine renaissance in Council house building would unlock local Government's historic role as a major builder of affordable homes, which support strong and healthy communities and help to build prosperous places."