Here is another idea for Rachel Reeves.
If the Government really wants the UK to be a scientific and manufacturing champion, it must stop intellectual property, patents and scientists escaping overseas.
Six years ago, this paper ran a campaign against the sale of GKN, one of Britain’s oldest engineering groups, to the financially-driven, quoted buy-out group Melrose.
We came within a whisker of winning the hearts and minds of shareholders.
Only a last-minute vote by asset managers at Legal & General allowed the plunderers at Melrose to plough ahead.
The private equity-style model pioneered by former bosses Christopher Miller and Simon Peckham allowed them to secure tens of millions in payouts before leaving the scene.
Talent drain: The London Stock Exchange has been denuded of engineering and aerospace stocks by opportunist takeovers
The difference between the Melrose purchase of GKN and its previous deals is that, instead of immediately carving up the assets and selling them on to largely American buyers, they were forced by economic circumstances, the pandemic and the Ukraine war to keep them on the London stock market Now the inevitable has happened.
US car components rival American Axle has taken advantage of unloved GKN offshoot Dowlais, and moved in for the kill with a low-ball £1.2billion offer.
Should we care?
It is another blow to the prestige of the London Stock Exchange, which has been denuded of engineering and aerospace stocks by opportunist takeovers.
This has seen a string of companies vanish into foreign orbit, including flight-refuelling champion Cobham, satellite pioneer Inmarsat and submarine sonar innovator Ultra Electronics vanish into foreign orbit.
What has this to do with Dowlais, cheekily named after the south Wales birthplace of GKN?
The automotive parts group has been among the early developers of green technology. It pioneered some of the first
drivetrains for electric vehicles (EVs) which are a critical part of the UK’s climate change agenda.
Dowlais could, if command and control remained in the UK, have been part of the EV revolution. Greener drivetrains are now as unlikely to be made in the UK as solar panels (made in China), wind turbines (manufactured in Scandinavia) and heat pumps (from Poland).
It was notable that in Chancellor Reeves’ messianic speech on growth, one surefire UK winner, small modular reactors (SMRs) made by Rolls-Royce, was missing from the roll-call.
Dowlais shareholders should think twice before allowing it to be merged into a Detroit group. The premium to the share price of 25 per cent looks mean, given UK firms have rejected much larger mark-ups.
Diminishing the UK’s already-humbled engineering base is a severe blow to the nation’s economic security thanks to Melrose’s grasping stewardship.
Branching off
Talk about blame-shifting!
Lloyds Banking Group plans to shutter another 136 Halifax Bank of Scotland and Lloyds branches by March 2026. Why? Because its customers prefer to use online and mobile services.
The reality is Lloyds, in the manner of all the banks, has decided to ditch customer contact in favour of AI bots.
It has made it all but impossible for long-standing clients to receive paper statements, by requiring them to opt in.
Yes, mobile apps ensure bills are paid more speedily and that interest rate changes can be notified without delay.
But there are severe limitations. Someone seeking their first mortgage would much prefer a face-to-face chat in a branch, with an adviser they can trust.
Anyone seeking more complex financial services, such as wealth management or trust advice, would find the experience much better if there was a go-to person on their high street.
As for the elderly, who sometimes
struggle with new tech, they need the social contact offered by branches, are more easily scammed and shouldn’t be required to travel several miles to pay bills
Customers might ask why do they need Lloyds at all? If they want cheaper, flexible and faster mobile/online banking, why not migrate to challengers such as Monzo, Revolut, Wise and Atom? They are the real future!
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