Engineers call for wider energy support to protect UK industry following Budget

The Institution of Mechanical Engineers (IMechE) has welcomed measures in the Budget to support business investment and industrial competitiveness, but called for wider energy cost support to protect UK manufacturing, investment and high-value jobs.

Commenting on the Budget, James Partington, Director of Policy and Impact at IMechE, said investment in sectors such as aerospace and defence, improved access to finance and measures to reduce energy costs were important steps towards strengthening the UK’s industrial base.

However, he warned that the British Industrial Competitiveness Scheme, which will support more than 10,000 energy-intensive businesses from 2027, needed to go further.

“With growing energy costs piling ever more pressure on industry, we need this support to be extended to a wider range of companies, or we risk losing investment and high-value jobs to countries offering more competitive conditions”.

Partington also welcomed increased investment in AI across the UK, saying it could help create the conditions for growth in communities across the country.

He added:

“Engineering is central to growth across the UK, with 6.4 million people in highly skilled roles driving productivity and innovation. The Government must now match this contribution with the ambition and investment needed to unlock engineering’s full potential.”