Metalwork federation criticises Government over 'self harm' in budget

The Confederation of British Metalforming (CBM) said the Labour Government had "pulled the red carpet of "growth" from under UK manufacturing after canvassing its 200 member companies, the vast majority of them classed as small to medium-sized manufacturers (SMEs).

President Steve Morley took this view to London last week when he met with local Labour MPs in Parliament, who he said so far have been very supportive on the issues directly impacting SMEs.

However he accused the national administration of losing the "small amount of goodwill" in place, after employer NIC contributions and minimum wage rises announced in the budged squeezed company bottom lines even further.

“All of the optimism following the Election, and the promise of an Industrial Strategy, has been wiped away with the ill-thought-out budget," he said. 

"The tax hikes forced on to businesses could have a devastating impact on SMEs, who are still grappling with the impact of inflation and energy prices far higher than their European counterparts.

“This additional burden, estimated to cost our members tens of millions of pounds, is another whammy to an already under siege sector, with the stagnation of the EV market leaving the UK market in a state of purgatory.”

“Going forward this now begs the question…can we trust Labour with the Industrial Strategy? It is one thing introducing one, but it’s the content that counts especially for SMEs, who are constantly overlooked."

The Confederation of British Metalforming represents the interests of UK manufacturers of fasteners, forgings and pressings, cold-rolled and sheet metals products, a large proportion of which ends up in the automotive industry.

Declining sales of EV vehicles and the Zero Emission Vehicle (ZEV) mandate, which is going to start taxing car makers if they don’t hit targets for electric sales by 2025, is sending shockwaves through the sector and this is being felt throughout the supply chain.

“Business Secretary Jonathan Reynolds has said there will be an urgent consultation, and this has to happen before more self-harm is inflicted,” added Mr Morley.

“There was an opportunity for the UK to lead the world in this space, but the incentives and the stimulus were not continued in the concerted way they should have been – now our desire to be the first to meet EV targets is threatening the very existence of the sector.”

He concluded: “It’s not too late, but Labour needs to listen hard to the SMMT message on EV support and make sure that the voice for small and medium-sized manufacturers is heard and integrated into the development of the Industrial Strategy. If they achieve this, then some small crumbs of optimism may return.”