SMEs are vital to the UK’s manufacturing sector and economy – the Industrial Strategy must support manufacturing SMEs to build national resilience and incentivise growth.
The Manufacturing Commission is embarking on a new inquiry to scrutinise and support the Government’s Industrial Strategy. The inquiry plans to develop an ambitious policy agenda to ensure the Industrial Strategy is a success, resulting in a stronger and more resilient UK manufacturing sector.
The UK’s Modern Industrial Strategy, launched by the Government in June 2025, outlines a 10-year plan to increase business investment in eight growth-driving sectors. The Strategy promises support for SMEs by incentivising innovation, reducing energy costs, increasing access to finance, and improving supply-chain resilience.
Scoping sessions, held in May and July, identified the vital role that Small and Medium-sized Enterprises (SMEs) play in the UK’s manufacturing sector and the challenges that they currently face. However, the business environment for manufacturing SMEs has become particularly challenging in recent years, due to Brexit, the COVID-19 pandemic, and a sharp rise in energy prices, and other factors.
The Manufacturing Commission recently launched a call for evidence to help inform this work and develop policy recommendations for the Government. The inquiry will explore the following important themes:
- Sovereign capability
- Energy costs and infrastructure
- Access to finance
- The regulatory environment
Andrew Everett, CEO of the ERA Foundation, comments: “The ERA Foundation is delighted to support the Manufacturing Commission’s call for evidence on SME manufacturing for Industrial Strategy. Small and medium-sized manufacturing companies are the lifeblood of the UK economy. However, the business environment for these firms has become particularly challenging in recent years, due to Brexit, the COVID-19 pandemic, and a sharp rise in energy prices. We therefore welcome this inquiry, which will seek to make recommendations to Government on how manufacturing SMEs can help to deliver on the aims of the Industrial Strategy.”
Lord Bilimoria of Chelsea says: “As chair of the Manufacturing Commission and someone who has founded, grown, and sold a manufacturing business myself, I am delighted that the Commission’s forthcoming inquiry will focus on the opportunities and challenges that SME manufacturers currently face. I encourage businesses across the UK’s diverse manufacturing sector to participate in this inquiry, which will produce a series of recommendations for Government, following the publication of the Industrial Strategy earlier in the year.”
Small and Medium-sized Enterprises make up the vast majority of the UK’s 250,000 active manufacturing businesses, and these firms will be crucial to the success of the wider Industrial Strategy.
The Manufacturing Commission invites all stakeholders with an interest in this topic to participate in this inquiry and help shape its forthcoming recommendations.
To contribute, please download and complete the Call for Evidence Word document and email it to robert.allen@policyconnect.org.uk by 23:59 on Monday, 6th October 2025.
Notes to Editors
For further information about the inquiry, please get in touch with Robert.Allen@policyconnect.org.uk
If you have any questions, please get in touch with the lead researcher, Rob Allen, at Robert.Allen@policyconnect.org.uk.
The ERA Foundation supports this call for evidence.
About the ERA Foundation
The ERA Foundation is a non-profit organisation that promotes high-tech manufacturing across the UK by supporting engineering, innovation, and skills development programmes.
About the Manufacturing Commission
The Manufacturing Commission is the research arm of the All-Party Parliamentary Manufacturing Group. The Commission brings together Parliamentarians with leading figures across the manufacturing sector to undertake high-level research into UK manufacturing policy. It publishes regular reports containing impactful recommendations to the Government and industry. Crossbench Peer chairs the Commission, Lord Bilimoria of Chelsea, CBE, DL.
