A new report produced by the British Chambers of Commerce (BCC) highlights the problems caused to the UK economy and urges the Government to protect to take action now to provide security for key economic sectors.
“Delivering Growth: Resilient Global Supply Chains”, which can be found here, highlights a range of problems stretching from Brexit and the pandemic to wars in Ukraine and the Middle East and tariffs imposed by the United States. It warns the Government that it must secure vital manufacturing inputs to stop British competitiveness declining in an increasingly unstable world.
BCC Director General, Shevaun Haviland, said: “This report sets out practical, achievable steps to protect the foundations of our economy — from steel and semiconductors to defence and clean energy. The message from business is clear: delay is a luxury the UK can’t afford. The Prime Minister must act now, match the pace of our competitors, and put economic security at the heart of our national growth strategy.”
By 2035, UK requirements for critical minerals are forecast to increase sharply, driven by growth in electric vehicles, clean energy and advanced manufacturing. These include a rise of over 13,000% in lithium demand and a 1928% increase for copper.
The report states that domestic sourcing cannot deliver the required quantities and only a policy of supply chain diversification can provide economic security.
Among its recommendations, the BCC is calling for the creation of a ‘trade bazooka’ to allow the UK to deter economic coercion, by responding decisively to hostile trade actions.
It would like to see a new Economic Security Cabinet Committee, chaired by the Prime Minister, to coordinate policy-making on issues from tariffs to critical imports and wants the Government to take a robust approach to the EU’s Made In Europe agenda in order to guarantee the role of UK businesses in wider European supply chains.
