Specialist Manufacturing Sector: Regional Economies - 19th November 2025

Alistair Carmichael (Liberal Democrat)

I agree with everything that the hon. Gentleman is saying, but may I encourage him to go one step upstream and look at some of the wider policy context? If we are to regrow our manufacturing base, as we absolutely need to, we have to accept that it will be about future technologies, not just replacing what we had in the past. In my constituency, the development of tidal energy offers a supply chain of 80% UK product, which would then be exportable. If we could capture that, we would have something special—but for that to happen, we need a better policy framework to come out of the Department for Energy Security and Net Zero.

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Alison Hume (Labour)

As the first seaside resort in Britain, Scarborough pioneered bathing machines for women—horse-drawn sheds on wheels—who entered the ocean clad in vast garments, helped by servants. In those days, it was all about protecting modesty, but today the innovators in Scarborough are, thankfully, all about protecting the environment, as we move to net zero and tackle the climate crisis.

The move to net zero also inspires Alexander Dennis Ltd, formerly Plaxton—manufacturers of fine electric buses and a major employer in Scarborough—and in September, Schneider Electric opened up a brand-new, £42 million, state-of-the-art smart plant that produces the critical electrical equipment needed as the UK moves to cleaner energy. I have visited that incredible new facility in Eastfield, which makes the low-voltage switchgear needed to manage and distribute incoming power supplies into separate circuits, such as the feeder pillars for electric vehicle charging. The plain green box behind the whizzy plug-in will probably have been made in Scarborough. The facility is net zero in scope 1 and 2 emissions, and it uses modern technologies to reduce energy waste and maximise the use of renewable energy, 30% of which will come from its own solar energy system.

By manufacturing in the UK for UK organisations, our investment builds resilience into the nation’s critical infrastructure, reducing exposure to global supply chain shocks and slashing both cost and carbon emissions through shorter, optimised transport and logistic routes. UK production means faster and more flexible delivery of bespoke engineering solutions, tailored to the unique needs of UK projects. Customers can visit the Scarborough site and collaborate directly with product designers and engineers to ensure that products fully meet their needs before they move into production. Companies like Schneider and Alexander Dennis are looking to us for joined-up policy and a stable regulatory environment, as well as a Government commitment to electrification, transport decarbonisation and buying British through procurement incentives.

Advanced manufacturing employs nearly 50,000 people across Yorkshire and the Humber, contributing £6.2 billion to the country’s economic output. I am proud to represent a coastal constituency where innovation and excellence in specialist manufacturing proudly plays such a major part in addressing the climate emergency and in our regional success story.

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10:48 Chris McDonald (Labour)

I welcome those comments. The hon. Member is right to point out that skills is a cross-Government exercise, and that applies not only to defence skills colleges. Work is done across the two Departments I work in—the Department for Business and Trade and the Department for Energy Security and Net Zero—and skills itself resides in the Department for Work and Pensions, which is where it is co-ordinated. Moving skills into that area and having the co-ordination there is exactly right. I also meet Defence Ministers to discuss this issue; many of these skills are transferable across industries, and we want to ensure that people can transfer across from different industries. A couple of weeks ago I launched the clean energy jobs plan, which provides support for people to move out of the oil and gas sector, for instance, and into clean energy industries. I thank the hon. Member for raising that issue.

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