UK manufacturers invest at slowest pace since 2017, report says

By David Milliken

LONDON (Reuters) -British manufacturers are investing the least in new equipment relative to their sales since 2017, according to a report from trade body Make UK, which urged the government to streamline tax incentives in next month’s annual budget.

Make UK said manufacturers were investing the equivalent of 6.8% of their annual turnover in plant and machinery this year, down from 8.1% in 2024 and the lowest proportion in any survey in the past eight years. Investment in research and development fell to 6.2% of turnover from 6.5%, while spending on staff costs and training was becoming a greater priority.

“It’s clear that we’re at a critical juncture for investment, and there is a real sense of urgency. The forthcoming Budget must not only safeguard current incentives