Business and Trade Secretary Jonathan Reynolds and the Chancellor of the Exchequer Rachel Reeves have published a green paper to kickstart the delivery of the Government’s modern Industrial Strategy.
The strategy will aim to drive long-term growth in key sectors that are sustainable, resilient and distributed across the country.
Announcing the eight growth sectors will be the focus of the Strategy, alongside naming the new Industrial Strategy Advisory Council’s Chair, the Business Secretary has promised to “give investors a 10-year plan to choose Britain’.”
The key sectors the Government will focus its modern Industrial Strategy are advanced manufacturing; clean energy industries, creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.
The green paper, which will be published on the day of 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.
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 Council will inform the development of the Industrial Strategy through its expertise and latest evidence, working with businesses, trade unions, devolved governments, local leaders, academia and stakeholders.
Ahead of establishing a statutory body, the Government is introducing an interim advisory Council. The first Council meeting and announcement of full membership are expected in the coming weeks.
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.”
The Government has also identified eight growth-driving sectors for the Industrial Strategy, focusing on sectors the UK excels in today and will excel in tomorrow.
Over the last 25 years, the top 30 percent of sectors ranked by productivity in 1997 were responsible for generating roughly 60 percent of the economy’s entire productivity growth. Recognising this, the Industrial Strategy will channel support to sectors and geographical clusters that have the highest growth potential for the next decade.
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.”
Airbus welcomes the inclusion of advanced manufacturing in the Government’s Industrial Strategy as a vital opportunity to build on the successful partnership between government and the aerospace sector,” Airbus UK Chairman John Harrison added.
“As one of the most technologically advanced businesses in the UK, we also welcome the strong focus on innovation, which is crucial to driving future growth and maintaining the UK’s global competitiveness in aerospace and defence.”
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 task force will ensure that the Government works with businesses to address these risks, building the conditions required to deliver secure growth.
Dr Graham Hoare, Chief Executive Officer at the Manufacturing Technology Centre (MTC), added: “The Prime Minister this morning said that the industrial strategy is ‘not about picking winners’. I believe it needs to be about creating winners.
“That requires the strategy to really make a difference in three areas: creating the confidence to invest; nurturing the skilled people to make it happen; and developing the infrastructure to deliver it.”