The Growth Mirage: Manufacturing and the 'Axis of Incompetence'

 

The Growth Mirage: Manufacturing and the 'Axis of Incompetence'

There is a particular kind of grit required to run a factory when the people in charge of the country seem to view "industry" as a quaint relic of a bygone era. As Stephen Morley points out, the UK manufacturing sector is currently performing a masterclass in smiling through the pain. While the Labour government was elected on a platform of growth, the only thing currently growing is the cost of doing business. We are witnessing a classic case of ideological targets—specifically the breakneck pace of Net Zero—colliding head-on with the cold, hard reality of global competitiveness.

The "Axis of Incompetence"—the partnership between Chancellor Rachel Reeves and Energy Secretary Ed Miliband—represents the darker side of modern governance: the triumph of the spreadsheet over the shop floor. By pushing energy transition costs onto high-energy users and increasing the tax burden on labor, the government is effectively deindustrializing Britain by accident. It is a historical irony that a Labour government, traditionally the party of the worker, is overseeing a rise in unemployment to $5.2\%$ and an energy policy that risks destroying skilled jobs more effectively than the closure of the mines in the 1980s.

Morley’s observation about the Middle East conflict being used as "camouflage" for domestic policy failures is a sharp reminder of how power operates. When the numbers don't add up, find a crisis to hide behind. Yet, despite the Westminster bubble, the sector remains resilient. Companies are still investing, and confidence is being backed by real capital. But as any historian of failing empires will tell you, resilience is a finite resource. If the government continues to trade industrial competence for climate signaling, they may find that by the time they reach their "green destination," there won’t be any industry left to power it.