The Packaging and Films Association (PAFA), which represents the £2 billion UK plastic film and flexible packaging industry, has sent out a strong message to Chancellor Alistair Darling for his budget this week to sow the seeds needed by UK manufacturing industry to halt the worst decline in 40 years.

The PAFA announcement follows figures from the Office of National Statistics this month which indicate the biggest drop since monthly data on manufacturing output began in 1968.

Chief executive David Tyson says that there are now five serious issues facing all UK manufacturing businesses - many of them having impacts on flexible plastic packaging and its essential “protect and preserve” role in the food supply chain.

Tyson believes there is a need to halt manufacturing decline to allow continuity of food supply and the production of locally sourced, locally packed produce to British shoppers. Energy costs must be addressed, more faith needs to be put into UK manufacturing from European insurers or effective alternative government backing needs to be sought, and there needs to be investment in innovation, he said.

Tyson also wants the government to further accelerate its commitment to investing in energy from waste plants, maximising the potential for converting packaging waste into energy.

“All of these actions are not just necessary, they are necessary now,” said Tyson. “Our members are not asking for bail-outs like so many other UK institutions, but we are asking for a recognition that British manufacturing can be the most innovative and efficient if we are allowed a level playing field and the breathing space to manufacture our own success.

“The Chancellor has the perfect opportunity in the forthcoming budget to make a difference to manufacturing, but only if he acts now.”