British cable maker ends UK production after new government policies shock
A major UK cable manufacturer decides to move its production overseas due to recent policy changes. The company with £50m yearly income plans to shift operations to Asia while keeping its workforce
The Essex-based cable producer dont plan to continue its UK operations‚ following recent government changes. Kevin Hancock‚ the head of Connectix Cabling Systems (which makes fiber-optic cables for global internet firms) announced that all four of their British factories will stop production
The company - with its £50m yearly income and 150 workers - plans to move manufacturing to Asia. This shift comes right after the new Labour governments first Budget which raised national-insurance rates and the minimum-wage. Hancock started his business about 30 years ago and built it into one of UKʼs top cable makers: “I was born in the 60s and grew up in a council house‚“ he explained
I was from a poor background and we suffered under Labours power cuts and the three-day week in the 1970s
The firm faced issues before; in 08 they closed one factory due to the credit-crunch and rising costs. Now they mix low-cost foreign-made items with UK-produced goods but recent policy changes make even this un-workable. The company already works with about 400 people in India and China thru other firms
- No job losses planned for UK staff
- Workers will get different roles
- Production moving to India or China
- Company keeps British presence
Bank of Englandʼs chief Andrew Bailey pointed out that new spending plans and tax rules will increase employment costs. The Treasury defended its choices saying they inherited a £22bn budget gap and needed to fix public services. However Sir James Dyson called the new inheritance tax rules “spiteful“ and warned about risks to business growth
