Reform UK’s Manufacturing Pledge: What Would Change

Reform UK’s manufacturing pledge would support British industry through cheaper energy, simpler regulation, procurement that favours domestic producers and training matched to employers’ needs. Our aim is to make Britain a stronger place to manufacture, invest and build a skilled career.

For factory owners and workers, the central issue is competitiveness: whether producing goods here makes commercial sense. These are proposals for a Reform government, rather than changes already in force.

The starting point is how these commitments would affect the decisions British manufacturers make every day.

What our manufacturing pledge would change

Our manufacturing and business policies connect industrial growth with energy affordability, domestic purchasing and technical skills. We want British firms to compete without unnecessary costs imposed by government.

The main commitments address different parts of running a manufacturing business.

Policy commitment	Intended effect for manufacturers
Much cheaper energy	Lower production costs and stronger competitiveness
Simpler regulation	Less unnecessary administration and fewer barriers to expansion
Procurement favouring British producers	Better opportunities to supply public-sector customers
Training aligned with industry	More workers with relevant technical skills

These measures would work together. An order book creates little opportunity for expansion if a business cannot recruit skilled workers or afford its electricity.

The need extends across manufacturing. ONS reported that output rose by 0.1% in the three months to August 2026, compared with the previous three months. Seven of the 13 manufacturing subsectors recorded growth.

Our objective is broader industrial strength, with opportunities for smaller suppliers alongside major producers. That requires attention to operating costs and the conditions for long-term investment.

Cheaper energy for British factories

Lower production costs

Energy costs affect the price of British-made goods. Steelmaking, glass production and ceramics require substantial heat, whilst engineering businesses depend on electricity for machinery and production equipment.

Our approach prioritises energy security and expanded domestic production. We also propose scrapping net zero policies that we believe impose excessive costs on households and businesses.

Lower underlying energy prices would give manufacturers more room to compete on price, retain production and invest in equipment. However, savings would differ between industries because their energy use and supply contracts differ.

For energy-intensive producers, the relevant measure is the sustained cost of running production, rather than a short-lived reduction.

Security alongside affordability

Domestic production also matters because factories need dependable supplies. Our North Sea energy proposals connect energy policy with British jobs and supply security.

Expanding domestic output would not give Britain control over international oil and gas prices. Wholesale markets would still influence what businesses pay.

Tax changes also need careful interpretation.

For manufacturers that recover input VAT, removing VAT from energy does not provide the same lasting saving as reducing the underlying energy price.

The industrial test is whether policy delivers affordable, reliable power over the years covered by an investment decision. Factories buying long-lived equipment need confidence beyond their next bill.

Giving British producers a fairer chance

Public contracts and domestic production

We want procurement to give British businesses a stronger position when public bodies purchase goods and services. Public spending can support domestic production, skilled employment and supply chains.

Our public procurement pledge connects purchasing decisions with those wider industrial objectives.

For manufacturers, the opportunity extends beyond winning a headline contract. Major purchases can generate work for component suppliers, maintenance providers and specialist engineering firms.

Delivery would require clear purchasing rules and effective scrutiny. Procurement reform would also need to address existing legal obligations, contract performance and value for taxpayers.

Opening opportunities to smaller suppliers

Smaller manufacturers need a realistic route into supply chains. Complex documentation and demanding tender processes can consume resources that small businesses lack.

Removing unnecessary administration could make participation more practical. However, purchasers would still need evidence that suppliers can meet quality requirements and delivery schedules.

Contract design matters too. Requirements should reflect the work being bought, rather than exclude capable firms through avoidable complexity.

The intended result is more British businesses able to compete for work. Success would mean dependable products and stronger domestic capability, alongside responsible use of public money. Businesses would still need to win customers through quality, reliability and competitive pricing.

Training British workers for skilled jobs

Matching training to factory requirements

Our manufacturing commitment includes training young people in the skills employers need. That means connecting education and apprenticeships with real production work.

Manufacturing requires technical knowledge across machining, welding, electrical maintenance and quality control. Advanced facilities also need workers who understand automation and digital production systems.

Our plans for jobs and skills place British workers’ opportunities at the centre of industrial policy.

Training needs to match both the occupation and the equipment people will use. Employers therefore have an important role in identifying requirements and providing supervised workplace experience.

Apprenticeships with a clear employment purpose

Our Apprenticeship Wage Credit proposal, updated on 4 October 2026, sets a goal of 600,000 apprenticeship starts annually by the end of our first Parliament.

It proposes a 30% wage credit for eligible SMEs employing apprentices aged 16 to 18. That is a wider apprenticeship proposal, rather than a manufacturing-only target.

For smaller employers, taking on an apprentice involves supervision and training time alongside wages. Financial support can help address the initial cost.

However, starts alone would not demonstrate success. Completion, technical competence and progression into sustained employment matter too.

The industrial benefit would come when trained workers can perform skilled roles and continue developing their expertise. Higher productivity then gives businesses a stronger basis for better-paid employment.

Tax and planning that support investment

Manufacturers commit money to machinery, buildings and production systems before those investments generate returns. Business taxes and planning decisions therefore affect whether expansion proceeds.

The Chartered Institute of Taxation documented our 2024 tax proposals. Those proposals included reducing the main corporation tax rate to 20%, followed by 15% from year three.

These were manifesto proposals, not enacted changes. They explain the direction of our business-tax approach without establishing the tax rate applying today.

Our Contract with Small Business, updated on 20 September 2026, separately proposes a £150,000 VAT-registration threshold. That measure concerns smaller businesses, whilst larger manufacturers would face different tax and investment considerations.

For comparison, the government’s published Modern Industrial Strategy includes a commitment to cap the main corporation tax rate at 25%.

Our wider business approach also includes simpler planning and fewer unnecessary regulatory burdens. For manufacturers, planning can affect factory extensions, new premises and supporting infrastructure.

Predictable decisions matter because uncertainty can delay investment before construction begins. However, faster processes still need to address safety, environmental effects and local infrastructure.

The practical goal is a clearer investment environment. Businesses need to understand their likely costs and the route to expanding production, rather than absorb avoidable delays.

Advanced manufacturing and stronger supply chains

Technology that raises productivity

Our technology policy includes artificial intelligence, advanced manufacturing and life sciences. We want regulation that allows useful experimentation and rewards investment.

Within factories, technology can improve inspection, maintenance and production planning. Computer-controlled machinery and automation also require skilled people to install, programme and maintain them.

The commercial benefit depends on whether equipment improves output, quality or reliability. Purchasing technology without suitable training or a clear production purpose does little for competitiveness.

Smaller manufacturers need opportunities to adopt useful systems as well. Industrial progress should reach suppliers throughout production networks, rather than remain concentrated in a few large facilities.

Building capability Britain can retain

A stronger manufacturing base would give Britain more capacity to produce, repair and maintain important goods. Domestic suppliers also retain practical knowledge that can be difficult to rebuild after production disappears.

Our defence manufacturing proposals connect national capability with British industrial production.

However, stronger supply chains do not require every component to originate here. British manufacturers operate through international networks and sell into overseas markets.

The task is to strengthen domestic capacity where it supports competitiveness and supply security. That includes dependable suppliers and the ability to maintain equipment over its working life.

Export success would remain important because overseas customers expand the market for British-made goods.

How we would judge industrial progress

Manufacturing policy needs results that workers and businesses can recognise. Announcements alone cannot demonstrate that Britain has become a better place to produce goods.

The most useful measures would connect policy changes with industrial performance:

• Compare manufacturers’ underlying energy costs over time, with attention to differences between industries.
• Track investment, output and domestic supplier participation alongside the value delivered through public contracts.
• Measure apprenticeship completions and sustained skilled employment, rather than relying on recruitment totals alone.

These measures need context. Higher output can reflect stronger demand, whilst investment decisions also respond to borrowing costs and international conditions.

Similarly, creating more jobs does not automatically mean higher productivity. Skilled work, modern equipment and effective production methods need to develop together.

Our manufacturing pledge should therefore be judged through lasting industrial capacity. That means businesses able to win orders, train workers and reinvest in British production.

For workers, progress would mean credible routes into skilled employment. For manufacturers, it would mean a more competitive cost base and greater confidence when committing capital. Neither outcome can be established by a policy announcement alone.

A stronger foundation for British manufacturing

Our manufacturing pledge brings energy, procurement and skills into a common industrial programme. Its purpose is to make British production more competitive and create stronger opportunities for British workers.

Delivery would depend on turning those commitments into affordable power, workable rules and training that leads to skilled employment. The strongest evidence of success would be manufacturers choosing to invest and expand here.

Britain’s industrial future depends on making that choice commercially worthwhile.