The Chancellor’s Mini-budget has failed to stem the threat to Midlands Manufacturing according to new analysis released by Shadow Mayor for the West Midlands, Liam Byrne.

Using statistics published by industry body, Make UK, Byrne revealed:

  • In the week before the budget, 41% of UK manufacturers were planning redundancies
  • The most recent figures however show that 53% of UK manufacturers were planning redundancies.
  • Nationally, that's an extra 16,000 companies.
  • Applied to the West Midlands, that implies 7,714 manufacturing companies are now planning redundancies in the next 6 months - up by extra 1,732 since the budget.


Liam Byrne - who launched his Save Manufacturing Now campaign with TUC regional secretary Lee Barron, and Cllr Ian Brookfield two weeks said:

“The Chancellor’s announcement had a big hole where the plan for manufacturing should have been be and now it’s clear our manufacturing companies have noticed that missing support.”

“Employers have even less confidence than they did BEFORE the budget - it would seem that half price McDonalds in August does nothing to save jobs in the car plants of the West Midlands”

The money for ’shovel ready projects’ amounted to just 50p per person for week. That’s no way to deal with the largest recession we’ve had since the 1930’s. 

'We can’t keep repainting trains and drawing pretty maps and call it an investment strategy. At some point the Tory Mayor will need to face the reality that families need help now – not promises of great things to come in two or three years’ time.”

JLR have already announced 1,000 job losses and their supply chain will see a further 2200 jobs lost. The West Midlands could, under forecasts by the Bank of England, see unemployment rise to almost 325,000 people – a level not seen since the 1980s.

Liam Byrne added: “Now is not the time to be timid. Our Tory Mayor and his Tory Government have said they will do whatever it takes to get through the coronavirus crisis, but it’s clear that Rishi Sunak’s plans will do nothing to cushion the brutal blow that is just around the corner for so many families in the West Midlands who could now find themselves out of work.”



Manufacturing companies planning redundancies in the next 6 months


Before speech (3rd July)

After speech (20th July)






West Mids












UK (%)






The data comes from Make UK’s Manufacturing Monitor survey of manufacturing businesses across the UK combined with data from the interdepartmental business register (IDBR).


The analysis follows the launch of the Save Our Manufacturing campaign last week.

The campaign has three simple asks to get us through the coronavirus crisis:

  1. immediate action to support for wages to protect jobs with a jobs guarantee scheme or flexible short-time working support.
  2. emergency measures to stimulate market demand with subsidies for purchase of new vehicles. Just like labour out in place 10 years ago and like the Germans have today.
  3. flexible access to finance and support so firms can reorganise for new times

Followed by a plan to prepare for the future and ensure that high-tech Green manufacturing is at the heart of the West Midlands.

  • A proper capital kickstart to deal with rising unemployment and build new infrastructure like new renewable energy capacity, and high speed broadband networks;
  • New proper sector skills councils that deliver a ‘right to train and retrain’
  • Ambitious set of sector deals to kickstart the industries and the jobs of the future in automotive, Energy generation, retrofitting, building zero energy homes, hydrogen and aerospace support.
  • A step change in R&D for Made in the Midlands manufacturing,
  • Targetted support to turn derelict brownfield sites in the West Midlands into new green industrial zones.