READ MORE: 5 ways the new Industrial Strategy will change engineering
For some, the virtual omission signalled a wider lack of recognition for engineering in Westminster. So it was with great relief that IMechE policy experts read through the final Industrial Strategy document on Monday (23 June), finding a total of 23 mentions for engineers and engineering, excluding footnotes.
While such simple analysis might seem a crude barometer by which to measure the government’s intentions, it nonetheless reveals increased understanding of the profession’s importance – and other policies set out in the document back it up, from energy bill support for many of the UK’s most cutting-edge companies to a new focus on engineering skills. It also recognises engineering as “critical to the skills needed in priority sectors including advanced manufacturing, clean energy industries, and digital and technologies”.
“We're really excited that that was recognised in the strategy, and it was explicitly said,” IMechE education and skills policy lead Lydia Amarquaye tells Professional Engineering. “It was encouraging to see that there's so much emphasis on what engineering can actually support.
“We’re also really excited about the investment that has been mentioned within it for engineering skills, and the transformation that could have in terms of how we train engineers and encourage people into the sector, with the exciting prospect of future technologies.”
Funding announced in the strategy includes an extra £1.2bn per year for skills by 2028-29, with new short courses in relevant skills for eight high-growth industries, which also include defence, creative industries, financial services, life sciences, and professional and business services.
The government also announced investment of £100m over three years to support engineering skills in England, working with Skills England to determine how it can increase the pipeline of talent. While that figure is much smaller than the yearly £1.2bn, training aimed at the high-growth sectors, major infrastructure and transportation projects will ensure that all industries benefit, Amarquaye says.
It was also positive to see a regional focus in the plan, she adds, including new Technical Excellence Colleges to address specific shortages. And while it stopped short of delivering a National Engineering and Technology Workforce Strategy, as called for by IMechE, the government said it will work with industry to assess which sectors need such strategies.
The announcement is a step in the right direction, Amarquaye says. “Essentially, that’s what we were asking for – a consideration of what is required within each industry, and how the workforce can be set up to support that.”
A good case can be made for engineering to deserve its own workforce strategy, she adds. “When you have large government projects, whether it is energy or advanced manufacturing or rail projects, all of those things will require a workforce. I think there has to be a plan in place for all of these major projects to have the people to make them successful, so I think we will get there.”
Energy boost
Electricity prices were a significant focus in the strategy, with the government recognising that high bills and long waits for grid connections are “two of the biggest barriers facing UK industry”.
Starting in 2027, a new competitiveness scheme will reduce costs by up to £40 per megawatt-hour for over 7,000 electricity-intensive manufacturers, including companies in automotive and aerospace. The companies, which could see their electricity bills cut by up to a quarter, will be exempt from paying levies such as the renewables obligation, feed-in tariffs and the capacity market.
“Engineering companies in the UK have consistently cited high energy costs as one of the biggest challenges to being competitive in global markets,” IMechE head of policy Matt Rooney tells Professional Engineering. “Part of the reason for high electricity costs here is that most businesses pay the full cost of electricity, including the environmental levies that are also paid by households. Some comparable countries currently have more exemptions for manufacturers on these levies than the UK.
“The announcement in the Industrial Strategy will likely be welcomed by business, as it will help to make the country’s industry more competitive.”
However, widespread exemptions from green levies might raise fears of delays to deployment of renewables or higher costs for taxpayers.
“The policy will have to be paid for somehow, but details have not been made clear,” Rooney says. “Obvious solutions are to increase the levies paid by households or to use general taxation, but these would be difficult political choices for the government. A consultation on implementing the policy is planned and IMechE will be watching closely.”
‘A position of trust’
“It is fantastic to see the UK government’s modern Industrial Strategy set out the importance of engineers and engineering to the future prosperity and security of the UK – a position of trust that we have long championed,” said IMechE president Matt Garside in an online statement.
Sector workforce strategies are a major step towards addressing skills shortages in the UK, he continued. “We recommend that the government work with industry to ensure the engineering sector is included. Workforce planning is vital to ensure there is a skilled pipeline of engineers and technicians ready to deliver the strategy’s goals.
“Our policy recommendations are reflected across several parts of the Industrial Strategy and we look forward to ongoing engagement with government to build up the engineering profession and ignite growth for the UK – something investing in engineering has proven to do time and time again.”
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Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.