4 minute read - 14th October 2024
Government launches Industrial Strategy and new Advisory Council to ‘hardwire stability’
Scroll to the bottom of this page to view the Industrial Strategy green paper
As the International Investment Summit gets underway (14 Oct 2024), the government has launched the first Industrial Strategy in seven years, which it says will reignite Britain’s industrial heartlands, kickstart economic growth and hardwire stability.
The first stage in delivery begins with the release of a green paper, published by Jonathan Reynolds, the business and trade secretary, and chancellor Rachel Reeves.
The strategy aims to drive long-term growth in key sectors that are sustainable, resilient and distributed across the country. Alongside announcing the eight key growth sectors and naming the new Industrial Strategy Advisory Council’s chair, the business secretary has promised to “give investors a ten year plan to choose Britain”.
The eight key sectors the government will focus its modern Industrial Strategy on are: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
The International Investment Summit will bring together UK leaders, high-profile investors and businesses from across the world. There, Reynolds is expected to tell delegates the Industrial Strategy will put Britain back on the global stage and help attract investment into the most productive parts of the UK economy.
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The government has launched the first Industrial Strategy in seven years, which it says will reignite Britain’s industrial heartlands, kickstart economic growth and hardwire stability / Picture: Getty/iStock
Clare Barclay, CEO of Microsoft UK, will chair the Industrial Strategy Advisory Council. 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. In the King’s speech, the government committed to putting the Council on a statutory footing – giving it powers and responsibilities and ensuring it will be permanent and independent. Ahead of establishing a statutory body, the government is introducing an interim advisory Council. The first Council meeting and announcement of full membership is expected in the coming weeks.
Jonathan Reynolds MP, business secretary, 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’s wealth of talent and experience will help ensure the Industrial Strategy delivers its mission of unleashing the potential of high productivity sectors to spur growth, spread wealth, and drive up employment across the UK.”
Clare Barclay, CEO, Microsoft UK, 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.”
Over the last 25 years, the top 30% of sectors ranked by productivity in 1997 were responsible for generating roughly 60% of the economy’s entire productivity growth. The government says that’s why the Industrial Strategy will channel support to sectors and geographical clusters that have the highest growth potential for the next decade.
Businesses up and down the country and international investors are invited to respond to the Industrial Strategy green paper, which will be published tomorrow. The consultation will provide stakeholders with the opportunity to inform the Strategy’s continued development and ensure it delivers tangible impact to people and communities right across the UK.
The first stage in the delivery of the Industrial Strategy begins with the release of a green paper 14th October / Picture: Getty/iStock
Stephen Phipson, CEO, Make UK, 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.”
The government is also establishing a new supply chain taskforce that will work to assess where supply chains critical to the UK’s economic security and resilience – including those in the growth driving sectors outlined in the industrial strategy – could be vulnerable to disruption. The taskforce will ensure that government works with business to address these risks, building the conditions required to deliver secure growth.
Read the Industrial Strategy green paper below
