Andy Burnham’s Heathrow hesitation is a blow to British manufacturing

It felt like another déjà vu moment for companies at the coalface of the economy.

Like previous governments, Andy Burnham and his Cabinet seem to be talking a good game on growth and creating the conditions for ambitious firms to trade more freely, with fewer shackles and less red tape dragging them down.

The Chancellor's commitment to using UK businesses to deliver a £6bn navy project is the first sign that Number 10 and 11 Downing Street may actually have some common sense.

However, just as management teams start to think this time could be different, we have the Prime Minister's neutral (and I'm being kind) stance on construction of the third runway at Heathrow.

If you cast your mind back, you'll remember this critical infrastructure investment was heralded as the saviour of UK Steel, with members of the Steel Council invited to attend the announcement.

What sort of mixed message does this send out to the steel industry desperate for work, an industry currently underpinned by this government to the tune of millions of pounds per day and TATA now demanding even more support?

This sector not only provides critical support for defence and infrastructure, but also sustains downstream manufacturing, which continues to be hampered by quotas and tariffs as current domestic steel producers fail to meet their needs in full.

All of this doesn't really say 'Britain is open for Business', nor does it reinforce Burnham's reindustrialisation narrative. It also does little to support growth in our infrastructure to boost growth in trade or exports.

This brings me back to the core message I wanted to make during the Labour Party Conference. Talk is cheap and firms in industry need to see real action that makes a difference on the factory floor.

We need an Industrial Strategy that delivers competitive energy prices, a skills system that develops the engineers and technicians of the future and planning rules that allow companies to invest without getting trapped in years of bureaucracy.

Regulation needs to recognise the difference between a multinational with a dedicated compliance department and an SME employing 30, 50 or even 100 people.

There should also be the possibility for government to follow the German example and consider expanding the definition of a small-to-medium-sized business to include those up to 500 employees.

Management teams can handle difficult decisions, but they struggle with  uncertainty.

When a manufacturer is considering investing in a new machine, expanding a factory or taking on additional employees, they need to know what the economic and regulatory landscape will look like tomorrow and in the future, not just today.

For manufacturing, there is little point in simply changing the faces around the Cabinet table if the thinking remains the same.

If Andy Burnham's administration is serious about reindustrialisation, then our SMEs must be at the forefront of its thinking. He should look closely at Germany's 'Mittelstand' model, which has long demonstrated how sustained support for small and medium-sized businesses can drive regional economic success.

It offers an example of the kind of devolved approach he has said he wants to encourage and could be replicated in the UK."

A government genuinely striving for growth needs to understand where growth actually comes from…businesses investing, employing people, exporting and making things that the rest of the world wants to buy.

It also comes from creating an environment where the next generation of manufacturing businesses can thrive, rather than deciding that their future lies somewhere outside the UK.

So, Andy Burnham, welcome to the top job. You have inherited a sector that is resilient, innovative and increasingly frustrated. But for British manufacturing, the test is remarkably simple: 'are we going to be better off, more competitive and more confident in twelve months' time?'

Because if the answer is no, then the musical chairs in Westminster will mean very little to those of us standing on the factory floor.

We have spent too long navigating political storms. What we need now is a government that knows where it is going and, crucially, understands that manufacturing must be part of the journey.

So, my message to the new Prime Minister is simple… don't just tell us you support manufacturing. Show us!

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Stephen Morley is President of the Confederation of British Metalforming.

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