Small and Medium-sized Enterprises (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.

Cross-party think tank Policy Connect and the Manufacturing Commission, the research arm of the All-Party Parliamentary Manufacturing Group (APMG), have launched a new inquiry into the role that SME manufacturing businesses will play in the delivery of the Government’s recently launched Industrial Strategy. The inquiry plans to develop an ambitious policy agenda to ensure the Industrial Strategy is a success and results in a stronger and more resilient UK manufacturing sector.

The Industrial Strategy inquiry will be led by the APMG and Manufacturing Commission’s chairs, Bill Esterson MP and Lord Bilimoria of Chelsea CBE, DL. Experts from industry, academia, and the third sector are included in the inquiry’s steering group, with the ERA Foundation sponsoring the inquiry.

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.

Inquiry scoping sessions in May and July identified the vital role that SMEs play in the UK’s manufacturing sector and the challenges that they currently face. The Manufacturing Commission’s inquiry will produce evidence-based policy recommendations that address these challenges and support the Government to deliver on the aims of the Industrial Strategy.

The inquiry will explore the following important themes:

• Sovereign capability.
• Energy costs and infrastructure.
• Access to finance.
• The regulatory environment.

Lord Bilimoria of Chelsea, Inquiry Co-Chair 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.”

Andrew Everett, CEO, ERA Foundation comments:

“The ERA Foundation is delighted to sponsor the Manufacturing Commission’s forthcoming inquiry 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.  I 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.”

Rob Allen, Senior Policy & Research Manager, Policy Connect notes:

“The Manufacturing Commission welcomes the Government’s new Industrial Strategy and Advanced Manufacturing Sector Plan, which will give much-needed certainty to businesses and provide a long-term framework for investment.  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.”

Inquiry Steering Group

Andrew Everett – ERA Foundation

Andrew Churchill – ERA Foundation/JJ Churchill

Professor Tim Minshall – University of Cambridge Institute for Manufacturing

Professor Carl Perrin – Coventry University

Mandy Ridyard – Produmax

Professor David Seall – University of Surrey Business School

Notes to Editors

For further information about the inquiry, please contact robert.allen [at] policyconnect.org.uk (robert[dot]allen[at]policyconnect[dot]org[dot]uk).

For any comms enquiries, please contact james.taylor [at] policyconnect.org.uk (james[dot]taylor[at]policyconnect[dot]org[dot]uk).

This report is kindly sponsored by the ERA Foundation.

About Policy Connect

Policy Connect is a cross-party think tank. We specialise in supporting parliamentary groups, forums and commissions, delivering impactful policy research and event programmes and bringing together parliamentarians and government in collaboration with academia, business and civil society to help shape public policy in Westminster and Whitehall, so as to improve people’s lives.

Our work focusses on five key policy areas which are: Education & Skills; Industry, Technology & Innovation; Sustainability; Health; and Assistive & Accessible Technology.

We are a social enterprise and are funded by a combination of regular annual membership subscriptions and time-limited sponsorships. We are proud to be a Disability Confident and London Living Wage employer, and a member of Social Enterprise UK.

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 government and industry. The Commission is chaired by crossbench Peer, Lord Bilimoria of Chelsea, CBE, DL.

About the ERA Foundation

The ERA Foundation is a non-profit organisation and promotes high-tech manufacturing across the UK by supporting engineering, innovation, and skills development programmes.