Andy Burnham urged to cut energy costs and boost skills for UK manufacturers

Prime Minister Andy Burnham was sworn in at Buckingham Palace on a Monday, immediately launching a set of policy moves that touch the cost base of British industry. In his opening address he promised a “circuit‑breaker” for the economy, a shift of political power away from London and a ten‑year industrial plan that will be fleshed out later this year. Within hours the government announced a cut to value‑added tax on household electricity, a cap on bus fares at £2 and a substantial reduction in business rates for pubs, clubs and live‑music venues.

Energy costs remain the biggest drag on competitiveness

Westley Engineering’s managing director highlighted the long‑standing problem that manufacturers say still haunts Britain’s factories.

Media additions

“Energy costs also remain one of the biggest drags on UK competitiveness. Manufacturers continue to pay significantly more than many of our international competitors. Every pound spent on excessive energy bills is a pound that cannot be invested in new equipment, technology or people.”

Chris Greenhough, Managing Director, Westley Engineering, via The Manufacturer

Make UK’s CEO Stephen Phipson warned that “the test now will be turning that ambition into action through implementation of the Industrial Strategy”. He urged the government to move beyond “talk is cheap” and deliver “real, urgent progress” on energy pricing.

Sir John Lazar, president of the Royal Academy of Engineering, added that while the UK leads in research and innovation, “over half of UK engineering and technology firms have not yet adopted any of these potentially beneficial technologies”. He linked the lack of adoption to the need for better energy‑infrastructure policy, a point echoed in a Forbes analysis that expects Burnham’s Treasury to lean harder into blended finance for grid capacity and industrial decarbonisation.

Skills, training and the talent bottleneck

Manufacturers also see the shortage of skilled workers as a parallel crisis. Kate Ambrosi, chief executive of the Baker Dearing Educational Trust, called for “parity of esteem between academic and technical education routes” and pushed for “more apprenticeships, more technical university places, more scholarships and bursaries for shortage occupations”. She noted that Burnham, as former mayor, championed the Greater Manchester Baccalaureate and the University Technical College “Sleeve” initiative.

Greenhough echoed the call for a “Training Tax Credit” that would encourage businesses of all sizes to invest more heavily in apprenticeships, upskilling existing staff and developing future talent. He also flagged the need for a streamlined route into the defence sector for SMEs, arguing that “smaller businesses bring innovation, agility and specialist expertise”.

Sun‑rising commentary from the Newsandstar highlighted how regional devolution could help match training provision with local employer needs. Cumbria’s Labour mayoral candidate David Allen said he could not wait to work with Burnham, noting that “more powers to communities” would enable “Cumbrians to be in control of our own destiny”.

Public procurement and regional decision‑making

Burnham’s pledge to use public procurement to back British industry was welcomed by manufacturers seeking stable demand. Sunny Prakash, managing director of WERIT UK, said the commitment to “take power out of Westminster and into communities” could reshape how industry and government work together, giving regional bodies the ability to align decisions with local supply‑chain needs.

In a LinkedIn post, Mike Hawes of the Society of Motor Manufacturers and Traders welcomed Burnham’s commitment to automotive manufacturing, calling the industrial strategy a “powerful engine for growth, delivering investment, innovation and high‑value jobs”. He stressed that strengthening competitiveness and supporting the transition to net‑zero are essential for re‑industrialisation.

Finance for the green transition

Beyond immediate cost relief, the burn‑through of sustainable finance is on the agenda. A Forbes commentary, drawing on Burnham’s record in Greater Manchester, predicts that the Treasury will push for devolved green‑investment powers, blended finance partnerships and a focus on home‑retrofit finance, clean transport and industrial decarbonisation. The piece links Burnham’s experience with transport electrification and housing programmes to an expectation that the National Wealth Fund will become a preferred delivery vehicle for regional climate projects.

The same analysis warns that without regulatory certainty in the UK Sustainability Reporting Standards and clear ESG rating frameworks, market confidence could waver.

Manufacturers across the UK are watching each announcement for concrete action. As the prime minister moves from rhetoric to implementation, the alignment of devolution, public procurement and training incentives will determine whether the sector’s twin challenges—energy cost and skills shortage—are finally addressed.