Budget shows a bolder vision is needed for UK manufacturing

28/10/26

Article by News team Defence 2 min read

The chief executive of the country’s leading contract additive manufacturer welcomed the defence commitments in today’s Budget – but said the Chancellor should have been bolder.

Craig Pyser, of Portsmouth-based AMufacture, said the commitment to fully fund the Defence Investment Plan and backing to scale up drone manufacturing were both positive signals in Mr Healey’s speech.

But he warned that the words needed to be matched by decisive action and a much broader programme of support for British manufacturers.

Craig, who is also chair of the UK 3D printing trade association AMUK, said: “The commitment to defence is certainly good news, although more will be needed to reach the Government’s target of 3% of GDP by 2030.

“The additional investment in the National Wealth Fund and British Business Bank, including up to £5 billion for defence and dual-use technology, will also be welcomed by manufacturers and it was good to hear the Chancellor back regulatory changes that will allow drone technology to be tested and scaled up quickly.

“Modern defence is as much about advanced manufacturing, additive manufacturing, drones, software and rapid innovation as it is about traditional military hardware.

“But there is so much more that Mr Healey could have done – without breaking the bank – to support our manufacturing base if he had only been more ambitious.”

Craig said incentives such as extending business rates relief beyond the high street to manufacturers, intelligent tax reliefs for defence-related employment, building on today’s boost to capital allowances, new innovation grants and structured support for workforce development would all have sent a clear signal that the Government backed the UK’s makers.

“We could have seen bold moves to encourage smaller firms to export such as the abolition of individual export licences, fast-track permitting for key manufacturing sectors and raising some of the financial thresholds so that smaller orders can be delivered without unnecessary oversight.

“Overall, there are things to welcome in today’s speech but I again feel that our politicians have failed to grasp the immense potential in our manufacturing base.

“Britain needs a joined-up strategy that links defence, skills, innovation and manufacturing growth together.

“If we get that right, the prize is enormous. The UK has world-class engineering talent. What we need now is the determination to turn that talent into world-class British-made products and a stronger industrial future.”

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