Step inside the world of British innovation, where debates over how and where we work are colliding with crucial policy decisions, all set against a backdrop of a relentless pursuit of engineering excellence. It’s a dynamic landscape, and few figures are more central to this conversation than the renowned inventor Sir James Dyson.
Sir James has made his position clear on the topic of working from home, describing it as “staggeringly self-defeating.” For a company like Dyson, deeply rooted in physical product development and intricate research, requiring employees to be on premises is seen as essential. The company insists that having staff work side-by-side in laboratories, research, and workspaces is vital for product development and design, fostering mutual learning and collaboration.
This stance puts Sir James in direct opposition to movements promoting flexible working rights. Minutes from a meeting with then-Business Secretary Kemi Badenoch revealed Dyson’s concerns that proposed legislation giving workers the right to ask for flexible working from day one “would cause significant issues for Dyson,” specifically making it “hard for Dyson to mandate” its on-premises policy and creating “additional HR requirements.” He argued there was “no need to legislate on this matter.”
Interestingly, another prominent business figure, Sir Martin Sorrell of S4 Capital, while admitting his views might seem old-fashioned, also prefers staff to come in more often due to “discernible reductions in productivity” from working from home. Despite studies suggesting increased happiness and productivity, Sorrell isn’t entirely convinced. He finds the “lack of interpersonal connection is a real problem” that arises from time out of the office.
However, Sorrell does offer a lighter, more talkative note on office life, stating he is “more open to another modern office practice—bringing a pet to work.” He even quipped about his own red setter, Ferus, named for the Latin word for ” savage, “because he’s not! He would “rather staff brought animals in than work three days a week,” highlighting a different kind of flexibility he finds more appealing.
The debate around how and where people work is only one piece of a larger puzzle concerning the future of British business, particularly manufacturing and engineering. A critical element for Dyson is the cultivation of talent, which he believes the current education system often impedes, deterring “the most brilliant problem-solvers.”
This belief spurred Sir James to action, leading to the creation of the Dyson Institute of Engineering and Technology after discovering outsiders could apply for “degree-awarding powers.” Launched in partnership with the University of Warwick, the institute began taking in around 40 A-level graduates annually for a degree-level MEng course.
The institute’s model is genuinely groundbreaking and has quickly become “the hottest ticket in town,” boasting the title of the most oversubscribed engineering degree course in Britain. It’s even managing to attract school leavers who hold offers from prestigious institutions like Cambridge.
What makes it so appealing? Not only are there “no tuition fees,” but students are also “paid to learn,” with starting salaries this year at £27,500. Students spend two days a week in classrooms and three days working directly within Dyson’s professional engineering and design teams from their very first week.
Before graduating, students may even gain international experience through placements in Singapore and Malaysia, key manufacturing hubs for Dyson products. Upon successful graduation, each student is guaranteed a job within the company, providing a clear pathway from education to employment.
Mark Taylor, Dyson’s chief research officer, is enthusiastic about the results, stating that “Working and training here is turning them into ninja Dyson engineers.” He explains that “they perfectly trained to take on the types of projects and problems we have, whether it’s design or the research into a fundamental area.”
This approach goes beyond traditional degree apprenticeships by deeply integrating work, learning, and a specific “kind of problem-solving ethos.” It’s a significant investment, costing £12 millon a year to run, with Sir James having invested a total of £70 millon to date. The plan is to invest £250,000 in each student throughout their course.
The institute aims to develop engineers with a “Dyson-esque personality and mindset,” mirroring the founder’s own iterative, trial-and-error approach to invention. Sir James famously went through 5,126 prototypes for his cyclonic vacuum cleaner before finalizing a design.
James Woudhuysen, who profiled Sir James years ago, described him as “very creative and having a ferocious self-discipline.” This stubborn process of iteration and experimentation is central to the Dyson philosophy, and it’s what they seek to cultivate in their students.
The institute’s faith in youth stems from a desire to harness the “naïve innocence” and fearlessness found in young talent. Mark Taylor agrees, highlighting their “fresh thinking, so much enthusiasm and eagerness and energy—that’s worth an enormous amount.” He adds, “And no one asks to routinely work from home,” which aligns perfectly with the company’s preference for on-premises learning and brainstorming.
The institute is also making strides in diversifying the engineering workforce. Beverley Gibbs, the institute’s director, notes that 30% of the intake are women, significantly higher than the engineering industry average of 18%. They also admit twice the number of candidates who qualified for free school meals compared to other selective universities, requiring AAB grades with an A in math and a STEM subject.
For applicants, particularly girls, who may not have taken physics at A-Level (where boys make up 77% of students), the institute provides an intensive physics summer school. This commitment to finding diverse talent is viewed not merely as a tick-box exercise but as essential to fostering innovation.
The physical environment of the institute, known as Dyson Village, reflects this unique approach. Located near the secretive D9 R&D building, it centers around the Roundhouse, a hub for work and socialization. Accommodation modules for first-year graduates are described as “more luxury chalet than capsule hotel,” with Sir James himself designing some of the furniture.
A visit to the village evokes a sense of a modern learning sanctuary, compared even to the look of ancient monasteries like Rievaulx 800 years ago. Students like Faith, who turned down Cambridge, express “absolutely no regrets,” stating she would “never have learned so much about myself and the world around me had I chosen a different path.”
Student projects are hands-on, reminiscent of a “Great Egg Race or Junkyard Challenge.” Jake, a student, highlighted the immense benefit of having “the best prototyping capabilities in the industry” available for coursework fabrication. Even the student-voted beekeeping society incorporates a Dyson twist, with remote monitoring and algorithms measuring hive health in real time.
This investment in home-grown talent and R&D is part of Sir James’s business model of selling highly advanced technology at high prices through radical reinvention. Rhys Morgan of the Royal Academy of Engineering points out that Dyson products “don’t just mimic what’s on the market” but “make big leaps, reinterpreting how a tool does a job.”
This “radical approach is what’s made him a household name,” says Morgan. Examples include the Ballbarrow from 1974, which replaced a conventional wheel with a ball to avoid getting stuck, or the vacuum cleaner that maintained suction without bags. The dryer that used high-speed air instead of heat also exemplifies this rethinking, offering faster drying times and lower energy use.
Research now spans some 40 different areas, all requiring significant investment in “clever and determined people.” This stands in contrast to the challenges faced by many British businesses, particularly regarding commercializing innovation.
James Brougham of Make UK points out that while “Britain leads Europe in the quality of its technology,” we are “good at innovation but bad at commercializing.” Start-ups either fail to scale, get sold off, or their innovations land “in research limbo.” Marcus Gibson notes British SMEs are at the forefront of sensitive US defense projects, showcasing high-quality materials and instruments.
Economically, the engineering and manufacturing sectors are crucial, making up 45% of UK exports and employing 6.5 million people. Despite sometimes being perceived as “unglamorous,” manufacturing pays a higher than average national wage (£39,260 versus £36,192).
Developing our own skills is clearly “in our national interest,” as Rhys Morgan puts it. However, a perpetual “skills gap” persists, with Make UK estimating 64,000 unfilled vacancies in manufacturing, resulting in £6.4 billion in lost output. The Royal Academy of Engineering estimates a need for 120,000 engineers annually just to replace retiring workers.
The issue is compounded by social perceptions. Make UK’s Brougham notes that unlike Germany, where engineers have high status, in Britain, they’re often seen as someone who fixes cars. The “Victorian workhouse image” deters potential talent, and being “technically illiterate” is even sometimes seen as a sign of social superiority, according to Sir James.
The number of manufacturing apprenticeships started has fallen sharply by 42% since the introduction of the levy, from around 75,000 a year to about 42,000 last year. Yet, Dyson manages to generate “huge enthusiasm amongst teenagers,” a recent development possibly fueled by its expansion into hair and beauty and the rise of TikTok, making it a powerful recruitment tool.
Importing engineers is also a contentious issue. Yvette Cooper has initiated a review of the skilled worker visa scheme, concerned that British graduates compete with all-comers. The £38,700 salary threshold for these visas has led to complaints that it has “priced many employers out of the international graduate recruitment market,” according to Stephanie Baxter of the Institution of Engineering and Technology, which advocates for a more liberal immigration regime.
Adding to the pressures, industries are penalized by business rates for investing in high-tech plants. These rates are based on the value of capital equipment, meaning a firm with significant robotics investment faces a much higher bill than, for instance, a financial firm with less physical equipment, as Brougham points out.
The debate around policy takes on greater urgency when considering recent government measures. Sir James Dyson has strongly criticized Chancellor Rachel Reeves’ budget, particularly the new inheritance tax policy, calling it “spiteful” and a threat to family businesses.
Under these changes, family-owned businesses and farms valued over £1 million will face a 20% inheritance tax starting in April 2026. Sir James argues this “family death tax,” as he termed it, will “kill off established family businesses,” undermine continuity, discourage new ventures, and ultimately lead to job losses. He contends that “no business can survive Reeves’s 20 percent tax grab.”
Sir James highlights that this tax is extracted “only from British family companies, not private equity or public companies,” making it particularly damaging. He believes it will be “even more damaging than the attack on family farms,” lamenting that the changes will “kill entrepreneurship, snuff out wealth creation, and stunt growth.”
Sir Martin Sorrell also voiced concerns about these changes, worrying about plans to hit inheritance tax, capital gains, and employer National Insurance contributions (NICs). He notes that adding to wealth taxes will have “very significant consequences as it forces people to liquidate assets to pay the tax and/or leave the country.”
The increase in employers’ NICs is another point of contention. James Brougham estimates this adds £971 to the cost of employing a worker in the manufacturing sector, making hiring “more risky.” He suggests employers will be “motivated to clean house” and anticipates it will “become much harder to hire in 2026,” especially given the existing skill shortage.
Andrew Griffith, shadow secretary of state for business and trade, criticizes these moves, stating, “Labour fundamentally doesn’t understand business.” He argues the NIC changes impact “every single business across this country” and views them as punishing hiring by stealth, suggesting more “honest” tax methods like income tax or VAT would be preferable.
Griffith goes as far as to say, “Labor goes out of the way, uniquely, to destroy jobs.” The government, however, maintains it supports business and seeks to maximize economic growth and promote long-term investment.
For a privately owned family firm like Dyson, being insulated from the short-term pressures of publicly listed companies or private equity allows it to express the founder’s vision. Activist shareholders might question the expense of the institute or demand licensing of inventions, but a family company can prioritize long-term R&D and talent development.
Beverley Gibbs confirms the benefit, stating, “We benefit hugely from having the long-term investment and commitment of James and the Dyson family.” This commitment allows for initiatives like the institute, which is uniquely positioned to fill a gap in the UK landscape, developing “world-class industrial champions” from home-grown talent.
This is crucial because, despite having “world-class research universities,” Britain lacks many industrial champions. Rian Chad Whitton of Bismarck Analysis wonders why Labour would introduce taxes that might encourage British industrialists to “sell out to American private equity” if they truly want their industrial strategy to succeed.
In an era of shifting global dynamics, including the potential return of Trump and the end of some globalization trends, even free market proponents like Griffith argue for a more nuanced approach. Running down our engineering and manufacturing base impacts economic, national, and military security, he contends.
Gibson adds an encouraging note, saying, “The French and Germans are frightened to death of British innovation.” He believes the UK has a natural advantage, producing new things the more methodical continental competitors haven’t considered. The challenge isn’t finding “winners,” he suggests, because “we have a winner—we just need to take the brakes off.”
The call to “take the brakes off” British innovation resonates through the concerns about policy and the enthusiasm for nurturing engineering talent. From the spirited students at the institute pushing boundaries in labs and even with beekeeping algorithms to the fundamental debate about the nature of work itself, the future of British industry hinges on navigating these complex challenges.
Whether the vision of fostering ‘ninja engineers’ and radical innovation can thrive under the pressures of proposed tax changes and shifts in employment policy remains a critical question for the UK economy. It’s a landscape full of potential, shaped by determined individuals and the ever-present need to blend creativity with commercial reality.
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