The call comes on the back of the Make UK/BDO second quarter Manufacturing Outlook survey which shows growth and orders slowing significantly with exports nosediving and investment flat.

Chancellor Rishi Sunak promised help in the autumn, during the Spring Statement earlier this year.

Make UK, which represents manufacturers across the country, believes the seriousness of the situation and the prospects for the next six months, means that industry cannot wait until autumn.

It has called for action before Parliament heads for summer recess.

Dawn Huntrod, director for the North of Make UK, said: “Whilst industry has recovered strongly over the last year we are clearly heading for very stormy waters in the face of eyewatering costs and a difficult international environment.

“Clearly some of the factors impacting companies are global and cannot be contained by the UK Government alone. However, just as it is quite rightly taking measures to protect the least well off, it must take immediate measures to help shield companies from the worst impact of escalating costs and help protect jobs.”

Make UK has made a number of recommendations for measures Government can introduce now to address rising business costs.

It wants the Government to either waive or reduce business rates for the next 12 months, implement VAT deferrals for larger businesses and waive it completely for SMEs and temporarily freeze the Climate Change Levy and, if energy costs continue to rise, remove it completely.

The organisation has also called for the Government to review the efficacy of the business interruption loan schemes introduced during the pandemic and deploy a successor scheme by the third quarter.

According to the Manufacturing Outlook survey, total orders dropped substantially from the last quarter and although the UK market held up, exports turned negative, reflecting the national outlook. As a result of this worsening picture, recruitment intentions turned negative while investment flatlined as companies sought to use their cashflow to meet ongoing operational costs.

Make UK has forecast growth for manufacturing in 2022 of 2.3 per cent and 1.7 per cent in 2023.

Steve Talbot, head of manufacturing at BDO in Yorkshire, said: “Manufacturers across the region have shown their ability to overcome a wave of challenges over the last couple of years to remain competitive. The question is when fatigue will overcome resilience. The tipping point where the shorter term need to retain cash outweighs investment is starting to be reached and could have significant implications for future growth.

“Rapidly rising input costs, ballooning energy bills and in some cases inflation-busting pay settlements have hit margins and slowed investment plans.

“There is now a strong case for Government action to help manufacturers weather the immediate storm and incentivise investment for long-term growth.”

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