Manufacturing supports over 2.5 million jobs in the UK with other service industry jobs also reliant on the manufacturing industry. The recession hit businesses in this sector hard, at a time when UK manufacturing has been battling a decline. Politicians and bank executives met at the House of Commons on 14th January to discuss how the industry can be better supported and reinvigorated. Following this meeting and in anticipation of growing demand for manufactured products in 2010, RBS Natwest have announced an additional £1 billion of low interest loans to provide much needed support and invigoration for the industry.

Manufacturing in the UK has been one of the recession’s biggest victims with redundancies more than trebling. The industry provides 48% of British exports, accounts for 12% of the economy and employs over 2.5 million people.

Since 2000, manufacturing jobs have dropped by 16.6% in the UK, the largest decline in Europe. In addition, 94% of manufacturing businesses are classed as small businesses who have typically struggled more during recession.

At a meeting with MPs and trade bodies in the House of Commons on 14th January, RBS Natwest announced the provision of an additional £1 billion of funds, available as low interest loans specifically to support and reinvigorate the UK manufacturing industry.

What does this announcement mean for business owners within the industry?