The head of manufacturers' trade body Make UK has criticised Labour over defence spending and high energy costs, warning that both are undermining the sector during a period of global turbulence. Stephen Phipson said the Government must increase military spending to 5 per cent of gross domestic product as soon as possible, arguing that the current timetable is too slow and is damaging investor confidence.

He warned that delays to the long-promised Defence Investment Plan are holding back private investment and limiting growth, particularly in regions that rely on high-skilled industrial jobs. While the Government has pledged to raise defence spending to 2.5 per cent of gross domestic product, Britain has also committed to a longer-term 5 per cent target.

Phipson also described energy prices as 'hideously high' and an 'existential threat' to manufacturers, saying the existing support scheme was inadequate. Rising costs linked to conflict in the Middle East have added further pressure, while new survey data shows factory growth stalled in February and firms have cut jobs for the sixteenth consecutive month.

He further cautioned that rising youth unemployment risks 'condemning a generation of young people', adding to concerns about the sector’s future competitiveness and workforce stability.