The UK Government has published a green paper to start delivery of its Industrial Strategy, outlining the eight sectors which will form the focus.
The green paper was published at the start of the International Investment Summit.
The key sectors on which the UK Government will focus its Industrial Strategy are:
- Advanced manufacturing,
- Clean energy industries,
- Creative industries,
- Defence,
- Digital and technologies,
- Financial services,
- Life sciences,
- Professional and business services.
Business and Trade Secretary Jonathan Reynolds MP said:
“Our modern Industrial Strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next 10 years and beyond.
“This is the next step in our pro worker, pro business plan which will see investors and workers alike get the security and stability they need to succeed.”
Clare Barclay, CEO of Microsoft UK, will chair the Industrial Strategy Advisory Council. The UK Government said the Council will inform the development of the Industrial Strategy through its expertise and latest evidence, working with business, trade unions, devolved governments, local leaders, academia and stakeholders.
Microsoft UK CEO Clare Barclay said:
“As Chair of the Industrial Strategy Advisory Council, I will ensure the Council provides a clear and strong voice on behalf of business, nations, regions, and trade unions, as we invest for the future to ensure that our prosperity is underpinned by robust growth in key sectors right across the country.
“Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the Advisory Council will play a central role in shaping and delivering this plan.”
Businesses are now being invited to respond to the Industrial Strategy Green Paper and have until 24 November to do so.
Make UK CEO Stephen Phipson said:
“We live in a world which is massively different to a decade ago and simply leaving the economy and, industrial strategy, to the free market is an ideology which is long past its sell by date. This is a welcome first step in addressing the Achilles heel of the economy which has left the UK an outlier among advanced countries. It sets out a clarity of vision for how the resources of Government and, in particular, each department can be convened towards a single objective of long term growth across all regions.
“With the welcome announcement of the Industrial Strategy Advisory Council Chair and, the Council being put on a statutory footing, industry will no longer fear the constant chop and change in policy we have seen over the last decade or so and can focus on the long term – it is important that the Government is delivering on its promises.”
Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said:
“This is a refreshingly thoughtful approach for UK industrial policy. If it’s coupled with a clear pro-small business agenda at the Budget, there will be renewed optimism that the Government can get its growth mission right.
“It will be crucial that the developing strategy is responsive to the needs of the whole supplier base, particularly where the interests of suppliers and their big customers don't align, and that policy levers are selected that have the reach needed to give a positive business platform for small firms.
“Small businesses need a renewed focus on economic growth and it’s encouraging that this consultation emphasises the need to drive investment and provide opportunities across our economy and through our international trading relationships.
“This is so much more than having an industrial strategy ‘document'. We agree that partnership will be key to creating a nurturing environment for small firms to thrive in, and we're pleased to see a number of the proposals put forward by Iain Anderson in his Anderson Review reflected in today's announcements.
“The Government has already announced its plans to bring a halt to late payments, which holds thousands of small firms back and makes the economy smaller and less efficient. Progress on this is a major element of industrial strategy, and could show the way for other countries grappling with their approach. It's positive to see the need for a ‘pro-business environment’ featuring so prominently in the green paper.
“It’s crucial the strategy works for small firms, as well as big, and addresses the issues that SMEs deal within these sectors and areas – and we look forward to working with Government to provide the small business voice as the strategy moves forward.
“Small firms are keen to innovate and take on new technology yet are often held back by a lack of time and funding. We hope that this strategy will place a renewed emphasis on enabling small firms to use new ideas and tech, increasing their adoption further, boosting R&D support and increasing the UK’s productivity.
“As we head towards the Budget at the end of the month we hope to see more from the Government to help secure sustainable, long-term economic growth, including on our calls for measures to ease employment costs, remove barriers to access finance for investment, and lift more small firms out of business rates.”
Dr Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB), said:
“The new Industrial Strategy is a positive step forward. It is particularly encouraging to see it backed by a statutory council that includes industry voices. This approach strengthens the alignment between the Government and business, paving the way for a more collaborative and robust economic future.
“While the Strategy is promising, and puts an emphasis on the importance of people and skills in creating a pro-business environment across the UK, now is no time for complacency. Economic growth will depend on public investment that can effectively leverage private investment. With a challenging Budget ahead, it's essential that this is recognised to ensure sustained progress.
NCUB's recent analysis highlights that public investment in research significantly boosts private investment. Indeed, for every £1 the Government spends on research and development (R&D), an additional £3.09 to £4.02 is invested by businesses in UK R&D. We are calling on the Government to be mindful of this and to use the Strategy to grow the UK’s status as a leading economic force, driving prosperity and opportunity, by creating an environment that promotes research, innovation, and collaboration.”
RenewableUK's Head of Supply Chain Ajai Ahluwalia said:
“With the UK taking a leading role in developing offshore wind, including new floating wind projects, now is the right time to set an industrial strategy for the sector to maximise the industrial benefits and employment opportunities which can be created by attracting billions of pounds in private investment to this country.
“The Government couldn’t find a more willing partner than the offshore wind sector. We set out an Industrial Growth Plan for offshore wind earlier this year, identifying specific areas within the supply chain in which the UK can secure new investment and be globally competitive, such as cables, blades and floating platforms. A focus on these areas could unlock £25 billion in economic activity by 2035, predominantly in our coastal communities which have struggled to secure investment in recent decades”.
