Two years have now passed since ADS published its Manifesto for 2024’s General Election. A lot has changed in that time. A new Government has brought new ideas and many new strategies. Perhaps the only constant is that the world remains deeply unsettled. Has the ADS Manifesto stood the test of time? What have been our policy wins? What more do we still need to do?

The most obvious policy win must be the publication of a Modern Industrial Strategy in 2025. Long called for by ADS, the Modern Industrial Strategy provided a clear strategic vision for UK industry for the first time in many years. Sorely needed, this represented a totemic step forward, allowing industry to invest with confidence in full knowledge of the Government’s industrial vision.

Of course, publishing a strategy is the easy bit. Delivery is ultimately how success is measured. Already, there are some encouraging signs, but much more work is needed to secure UK advantage in the years to come. Action to address the high cost of energy, skills shortages and the wider business environment will be a litmus test for success and ADS will be closely monitoring progress over the coming months and years.

Two years ago, ADS specifically called for action to address workforce shortages in partnership with industry. While some progress has been made, shortages have not ultimately abated, and our sectors remain well short of the talent they need to meet ambitions. Nevertheless, ADS has scored a significant win by bringing the Ministry of Defence on board as a partner in the Destination Defence Campaign.

Similarly, the Government’s 2025 reforms to the Apprenticeship Levy mark the most radical skills reset since the levy launched in 2017. Through the Growth & Skills Levy, Skills England stewardship, streamlined apprenticeships, and a defence and advanced manufacturing skills mission, there is unprecedented alignment between policy levers and labour-market need. Industry knows it must capitalise on these reforms by re-shaping levy delivery and informing Skills England’s evidence base.

For years, ADS has requested long-term funding commitments for our sectors. In aerospace, those lobbying efforts won out in the Modern Industrial Strategy, with a 10-year funding commitment secured for the Aerospace Technology Institute, backed by £975 million of public funding – match-funded by industry. In defence, the picture is encouraging but much less certain with limited detail available on the specific pathway to 2.5 and 3% of GDP on defence.

More widely, in terms of providing a more attractive investment environment, the picture is mixed. While some very welcome steps have been taken in relation to capital allowances, and R&D tax credit adjustments, business taxes have increased, undermining business growth and employment statistics. A significant delay in the publication of the Defence Investment Plan is also now a cause for concern. Stability has been challenging to maintain against the backdrop of turbulent domestic and global politics.

Two years ago, ADS lobbied for the Government to secure enabling infrastructure, such as access to finance. A significant cross-industry campaign, championed by ADS, has made some good progress on access to finance with buy-in from the highest levels of Government. The Defence Investment Summit last year was a good example of how far the narrative has shifted in the right direction, as is the establishment of a Defence Office for Small Business Growth; however, much more work is needed to tackle perceptions and dismantle barriers.

Taken together, our sectors can be proud of the progress they have secured over the last two years. Key asks around Industrial Strategy and long-term funding have been successful, while the Government has thrown its weight behind addressing workforce shortages and issues with accessing finance. While the devil is in the detail, and true success can only be measured by deliverables and outcomes, this is an encouraging start.

This year, ADS will continue to campaign on the key issues listed above. As our sectors ramp up production, innovate and develop the kit of the future, ADS’ partnership with Government will continue to strengthen, driven by a need to secure resilience, industrial competitiveness and national security. We look forward to seeing what the next two years will bring.