Manufacturing Sector 2024-05-02
2024-05-02
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Questions & Answers
Q1
Direct Answer
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Context
The question was prompted by the need to understand the current state of manufacturing in the UK, which has seen significant growth according to recent assessments.
What recent assessment has been made of the contribution of the manufacturing sector to the economy? The UK is a global hub for advanced manufacturing and the sector's importance was highlighted in the Manufacturing Technologies Association's report. It contributed £217 billion gross value added to the UK economy in 2023.
The UK is a global hub for advanced manufacturing, and according to the OECD, the UK's manufacturing sector has had the fastest growth in the G7 since 2010. Manufacturing contributed £217 billion gross value added to the UK economy in 2023, and plays an outsized role in key drivers of growth, including accounting for over 40% of UK exports.
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Assessment & feedback
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Q2
Direct Answer
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The question was prompted by the need to understand how advancements in artificial intelligence, robotics, and the internet of things are strengthening UK manufacturing.
The UK leads the way in areas such as artificial intelligence, robotics, and the internet of things, which are important for our future, especially in manufacturing. How is that strengthening British businesses and the British economy?
The Government are strongly committed to supporting research and development and innovation, because they contribute significantly to our economic growth. Industrial technologies such as robotics and AI are supporting manufacturing businesses to be more productive and sustainable. That is why the Government have increased R&D investment to £20 billion a year, and are expanding Made Smarter, our highly successful industrial digitisation programme for small and medium-sized enterprises.
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Q3
Partial Answer
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The question was prompted by the concern over high electricity costs for businesses in the UK, which are significantly higher than those in China and India.
Mainly because of this House's worship of the false idol of net zero, electricity costs to businesses in the UK are four and a half times higher than those in China and three times higher than those in India. Can the Minister explain how manufacturing businesses in the UK can compete with that on world markets?
I hope that the hon. Gentleman will join me in welcoming the introduction of the British industry supercharger, which reduces electricity costs for major energy-intensive industries. I hope that it will benefit businesses in his constituency and across the country.
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Assessment & feedback
The specific measures to reduce electricity costs were not detailed beyond mentioning the 'British industry supercharger'.
Response accuracy
Q4
Partial Answer
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Context
The question was prompted by a consultation on the plastic packaging tax and methodology, which some organisations have urged for swift publication.
A key sector of the manufacturing economy is the plastics industry, which employs 155,000 people and has an annual turnover of £28.7 billion. In July 2023, the UK Government began a consultation on the plastic packaging tax and the methodology behind it. In February, some 14 organisations signed a joint letter to the Government urging the swift publication of that consultation. When exactly do the Government expect to be able to respond to that long-overdue consultation?
The hon. Gentleman is right: the UK plastics industry is highly important and contributed £8.2 billion to the economy last year. I am aware of the consultation, which is led by the Treasury, and I will ensure that he gets a reply.
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Assessment & feedback
The specific timeline for publishing the response was not provided; instead, only an assurance of getting back to him was given.
Response accuracy