…But Will They Be Heard?
At the Make UK National Manufacturing Conference, Rachel Reeves addressed manufacturing leaders, highlighting big opportunities for the UK economy, particularly in defence and AI-driven innovation. But while the headline announcements were expected, it was the voice of SMEs that really stood out, especially when Andrea Wilson took the floor. You might remember our recent interview with Andrea.
Wilson, representing the backbone of British industry, the 90% of UK manufacturers who are SMEs, delivered a direct challenge:
“How will you improve SME representation and increase SME input into future policy to protect the critical UK SME Supply Chain? And will you consider appointing an experienced manufacturing professional to help you with this?”
Her question got attention but not an answer—a frustratingly familiar outcome for SMEs looking for tangible commitments from government.
SMEs Finally in the Spotlight?
For the first time in a decade, the term SME was mentioned more than any other time or event Andrea Wilson could remember. This marks a shift—one reinforced by the launch of “The Growth Mission – A Blueprint for Scaling Up SME Manufacturers”, a new report available on the Make UK website.
Stephen Phipson CBE repeatedly underscored the importance of SMEs in the UK supply chain, particularly for national security. This is good news—but will words translate into action?
What Rachel Reeves Promised
Reeves laid out several key commitments:
Defence Investment
2.5% of GDP will go to defence spending, creating opportunities for manufacturers, particularly in regional areas that have been left behind.
Procurement Reform
Acknowledging that defence contracts favour large companies, Reeves pledged to reform procurement to ensure SMEs get a bigger slice of the pie.
Industrial Strategy Collaboration
Instead of imposing top-down policies, the Industrial Strategy Council will co-design its approach with business leaders—though SME representation remains an open question.
Skills and Apprenticeships
The apprenticeship levy will be revamped into a Growth and Skills Levy, aimed at addressing the 42% decline in apprenticeships in manufacturing since its introduction.
The Big Gaps Still Unanswered
While Reeves hit the right notes, SMEs need more than just recognition—they need real influence. The key concerns still looming include:
- Will SMEs have a real seat at the table? SME representation in policymaking remains vague.
- How will funding reach smaller businesses? AI adoption, automation, and skills programmes often favour large firms with bigger budgets.
- Will procurement reform actually level the playing field? Past promises have fallen short—will this time be different?
What’s Next for SMEs?
The UK’s manufacturing future depends on its SMEs. With defence investment on the rise, AI transforming industry, and supply chains under pressure, the government must deliver on its commitments.
Andrea Wilson’s question may not have been answered this time, but the fact that SMEs dominated the conversation is a step forward. Now, it’s up to leaders, policymakers, and business advocates to ensure that SMEs aren’t just mentioned, but truly prioritised.
Will the government back SMEs with action or leave them fighting for scraps? The next few months will be critical in shaping the answer.
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