Manufacturers driving green investment despite policy hurdles
7 October 2025
Most UK manufacturers are planning major investments in green technologies over the next five years, according to a new report.
The survey from industry body Make UK reveals that 8 in 10 manufacturers want to embed sustainability into their business plans, with renewable energy topping their list of priorities.
Three-quarters of firms say they are already planning to invest in greener materials, renewable power and digital technologies to reduce emissions and improve efficiency.
However, many companies say government policy is holding back progress. More than 40% report that business rates currently penalise those installing green equipment such as solar panels and low-carbon heating.
Verity Davidge, director of policy at Make UK, says the policy was “actively dissuading firms from doing the right thing”.
“At a time when there are calls for the UK to row back on its net zero ambitions, manufacturers are clearly committed to investing in green technologies to make their operations more efficient by reducing costs and cutting emissions. However, it’s perverse that by making such investments their business rates increase.
“As a first step to boosting further investment in green technologies, government should remove this disincentive, followed by broadening R&D tax relief alongside lowering long term energy costs. This has the potential to unleash a wave of green investments that will make companies’ operations far more efficient by reducing costs and cutting emissions.”
Government initiatives to support green technology and decarbonisation are underway, but manufacturers say uncertainty and high costs remain significant barriers.
The report warns that unless urgent action is taken to fix these problems, the UK risks falling behind international competitors in industrial decarbonisation.
