Automation: Economic Benefits

Matt Western Excerpts

Tuesday 22nd April 2025 Westminster Hall

[John Slinger (Rugby) (Lab)]

I beg to move,

That this House has considered the potential merits of automation for the economy.

It is a pleasure to serve under your chairship, Mrs Hobhouse. I do not want to sound too dramatic, but hon. Members should know that this is an historic debate: it is the first time, to my knowledge, that automation specifically has been debated in Westminster Hall, and perhaps even in Parliament. This will also perhaps be the first speech in rather a long time about business and innovation not to focus solely on AI, which I am sure is a relief to us all.

I am going to argue that automation is not a threat to the UK economy; it is one of the greatest untapped opportunities that we have. From boosting productivity to creating high-quality and high-skilled jobs, automation can power our growth, competitiveness and resilience, but for reasons that I will touch on, and which I would be grateful for colleagues’ views on, the UK is, unlike in so many other areas, sadly not yet a world leader. Before I get too far into my speech, let me define automation as the action or process of introducing automatic equipment or devices into a manufacturing or other process or facility. It is not just about robotic arms.

There are a few problems relating to automation. One of them, at the most basic level, is that automation—robotics—conjures up deep-set primordial fears in many people. It is the fear of the march of the robots, of Terminator, and perhaps at a less hyperbolic level, of machines taking our jobs, particularly in manufacturing. Perhaps even in this place we fear automatons taking over our roles as Members of Parliament. I will argue strongly against such fear regarding automation.

I want to dispel the myth about robots stealing jobs. It simply does not stack up. In the UK, unemployment sits at 4.4%, similar to the US, where it is about 4.2%, but the United States has 300 robots per 10,000 workers—more than double the UK’s figure. The same is true for Japan, where the unemployment rate was just 2.4% in February 2025, despite its having 419 robots per 10,000 workers. In South Korea, the trend continues: unemployment stood at 2.9% in March 2025, even with an impressive 1,012 robots per 10,000 workers. Automation replaces tasks, not people, and in so doing it creates better-paid, more fulfilling jobs.

The current situation in the UK, according to the latest International Federation of Robotics figures, shows just how far British manufacturing has to climb in terms of automation adoption. The UK is now 23rd in the global robot density league table—that is not a phrase that I thought I would necessarily read out in the House, but I have just done so—with 119 robots per 10,000 workers, compared with a global average of 162. We have also dropped out of the top 10 global manufacturing nations, sadly; we are now in 12th place. Our global competitors are investing heavily in productivity. Sadly, in too many cases, we are falling behind, notwithstanding the excellent work of the Minister and the Government in this regard.

The UK is lagging behind for three main reasons: first, a reluctance to invest in capital equipment; secondly, perceptions of complexity and high up-front costs around robotics and automation; and thirdly, a lack of confidence and clear guidance, especially among small and medium-sized enterprises. Both Automate UK and the Manufacturing Technologies Association have highlighted that investment and confidence gap.

[Matt Western (Warwick and Leamington) (Lab)]

As my hon. Friend says, productivity in this country has flatlined since 2008. It is great that he has secured this debate, because productivity is one of my pet subjects, and as he has said, the Manufacturing Technology Centre is doing some fantastic work. I am sure he will have seen the video last week of Chinese robots running a marathon—what an extraordinary sight that was. Does he agree that while we need to develop all sorts of policies, fiscal incentives are key to getting the investment that businesses need to deliver on increasing robotisation and automation?

[John Slinger]

My hon. Friend makes a very good point. I am hopeful that the Minister will refer to some of the measures that the Government can take, and are already taking, to increase productivity. I must say, as someone who is running the London marathon on Sunday, I am slightly worried about the rapid rise of robots in that particular field—I am certainly going to beat any that I see.

The Manufacturing Technologies Association is calling for Government leadership to break down the barriers and deliver a national framework to accelerate adoption. While knocking on doors, which I am sure many colleagues were also doing over the Easter break, I met a young entrepreneur who has a small robotics and automation systems business. He wanted to expand but was not aware of what finance was available to make the capital investments he needed, nor of how he might take on an apprentice or two. I helped as far as I could as an MP by signposting him to the right people, but it shows a lack of cut-through regarding support for automation.

I have seen the potential of automation first hand on visits to companies like FANUC UK, in my constituency, part of a high-tech cluster at Ansty Park, which also includes the London Electric Vehicle Company and the Manufacturing Technology Centre, or the MTC, which I am proud to represent and champion here. I have seen how automation transforms jobs, shifting roles towards programming, maintenance and process design. I have also witnessed, first hand, how automation—due to its requirement for high-skilled workers—stimulates company investment in skills development, with apprenticeship programmes, outreach to schools and sponsorship of competitions. FANUC UK is a long-standing sponsor of the WorldSkills UK industrial robotics competition.

I have met apprentices at FANUC, the MTC and elsewhere, and seen their excitement and enthusiasm—as I am sure colleagues across the House have—when meeting young people who are training to become the masters of machines, unleashing economic potential and enabling new innovations to be born and grow. The MTC, which forms one of nine Government-backed Catapult centres that bring together industry and academia to turbocharge innovation and solutions—its progenitor being my noble Friend, Lord Mandelson—even runs an education campus. The generous sponsorship of £15 million over 15 years by Lloyds Bank has enabled it to offer numerous apprenticeship programmes that cater for our most innovative companies.

Another concern raised with me by businesses I have visited is that companies do not want, or are unable, to invest in automation and therefore cannot expand to meet the demand for their products and services. However, some solutions are already under way. In addition to the excellent work of FANUC UK in my constituency, the MTC is taking a leading role in the debate about automation, and having an effect. It is providing independent advice to help businesses on their first automation journey, and has opened a new robot experience centre, giving companies the chance to test, trial and learn in a risk-free space.

The MTC is also focused on upskilling and reskilling, with targeted workforce development especially for SMEs, which are, of course, the backbone of our economy. It is also driving the west midlands robotics and autonomous systems cluster, helping to build a strong regional ecosystem. There are lots of phrases that I am quite surprised to be saying, but none the less, this is the kind of support businesses need—and it is replicable at scale.

There is a huge prize available to the UK. Make UK estimates that if we scale up our SME manufacturers, we could add £83 billion to our manufacturing output—lifting us to seventh in the world rankings. To deliver that, we must double our robotics adoption by 2030.