Investment Monitor 2026
Reindustrialising the UK by Boosting Investment in AI, Machines and People
02.11.2026
Manufacturers want to invest in Britain. Is Britain ready to back them?
More than half of UK manufacturers say the country has become less attractive for investment. Yet almost two-thirds of firms planning a major expansion would still prioritise growing in the UK.
Published by Make UK in partnership with RSM UK, Investment Monitor 2026 explores the challenges shaping manufacturers’ investment decisions and the action needed to unlock growth.
- 56% say the UK has become less attractive for investment over the past three to five years.
- 62% of manufacturers considering a major expansion would prioritise growing in the UK.
- 35% say a supportive tax environment would encourage more investment, up from 24% last year.
- 41% now identify AI as an investment priority, up from 27% last year.
What’s holding back investment?
Manufacturers want to expand, modernise and embrace new technologies, but rising costs and an uncertain investment environment are making long-term decisions harder.
Investment in plant and machinery has fallen from 6.8% to 6.4% of turnover, while R&D investment has dropped from 6.2% to 5.1%.
The findings highlight the need for a more competitive UK investment environment that gives businesses the confidence to turn ambition into action.
What needs to change?
Make UK is calling on the Government to:
By expanding and accelerating the British Industrial Competitiveness Scheme.
So manufacturers are not penalised for investing in buildings, plant and machinery.
By extending Made Smarter to help businesses adopt AI and improve energy efficiency.
By increasing the maximum apprenticeship funding band to £35,000.
Unlocking UK manufacturing growth
Manufacturers still want to invest in Britain, but the right conditions must be in place to make that investment happen.
Investment Monitor 2026 sets out the evidence, challenges and policy priorities needed to strengthen UK competitiveness, boost productivity and support long-term growth.