By Paul Sheerin

If it seems like the honeymoon period for our new UK Government has come to an end less than four months after their comprehensive win, I’d argue that there is significant water yet to go under the bridge before we can complete that score card.

That could be because I really don’t care too much if our Prime Minister was lucky enough to receive some free tickets for a gig, and for the associated other stuff I’d say at best it’s not a good look, but for now I am going to hold it in the ‘hopefully naïve’ column for review.

However, what I really care about is seeing action on their stated single biggest focus: to grow our economy. My own particular interest is the opportunities for engineering and manufacturing, and so this government’s first budget at the end of this month is a big moment for how we appraise progress for that.

Last week saw the launch of a green paper inviting consultation and responses to “Invest 2035: the UK’s Modern Industrial Strategy”, and as an industrial strategy piece goes there is a fair bit to relish within it if like me engineering is pretty much your start and finish.

For starters, five out of its eight key “growth driving sectors” identified as priorities are firmly in the wheelhouse of our industry, and that feels like a decent signal of prominence that recognises the wider value and opportunity that the next decade offers UK Engineering companies.

Advanced manufacturing, defence, clean energy, life sciences and digital technologies all make the cut, and the direction to choose to be specific is welcomed as it avoids the trap of saying that everything is a priority, resulting in the situation where nothing can be a priority.

You could be critical and say that advanced manufacturing is broad enough to be a catch-all to make more feel included, but its inclusion for me is smart thinking. Yes, it does broaden the scope, but its definition signals the intent for growth to be based on the higher productivity returns that come from targeted investment which the UK recognises is a key part of our ‘bottom of the table’ standing in the economic growth tables.

Clean energy is another interesting one to single out. It definitely has the potential to be a growth driving sector, and I’d say that the pace of action to get GB Energy up and running would get pass marks so far. Appointing Chris Stark to head the mission within government, announcing a deal with Crown Estates with the aim of speeding up the currently glacial planning and development phase, and installing Juergen Maier as chair have been visible signs of the timely action that was promised. The plan to fund its £8bn investment from an increased oil and gas windfall tax has been less universally popular, with the concern that the just transition for employees in that sector may be impacted as a result, at the top of those questions.

I don’t doubt that the UK Government do indeed have some tough decisions to make ahead of a week on Wednesday – and let’s be honest they haven’t missed a chance in the last few weeks to remind us how difficult an inheritance they feel the UK’s finances have been.

Companies that I have spoken to have raised their concerns that in the drive to reduce personal impact in this budget, the burden will shift once again to business to shoulder the responsibility to balance the books. One conversation with a member company illustrated that concern by outlining the long-term nature of building business growth in the advanced manufacturing space. Their example described a near decade of discussion and evaluation with the potential customer, where through determination and application they now win the opportunity to embark on five to ten years of orders. In timescales like these, instability in the ability to plan employer costs such as National Insurance contributions or other employee on-costs are a barrier to the business growth that fuels the economy growth that we all agree should be our number one priority.

Ultimately, the detailed financial pledges of this budget will be the real actions of the policies that so far look on balance to be headed in the right direction. But for now, they are just words. A week on Wednesday we will see what supporting actions come from them.

Paul Sheerin is chief executive of Scottish Engineering