THE UK government has unveiled its highly-anticipated Industrial Strategy, marking a significant shift in economic policy ahead of a major investment summit in London. The strategy, announced by Business Secretary Jonathan Reynolds, aims to attract global investment and address longstanding economic challenges facing the country.
The new Industrial Strategy focuses on several key areas:
Technology and Innovation: The plan emphasises support for artificial intelligence, big data, and other emerging technologies. It includes increased funding for research and development to boost the UK’s innovation capabilities.
Clean Growth: A major pillar of the strategy is the transition to a low-carbon economy, with substantial investments planned in renewable energy and green technologies.
Skills and Training: The government has outlined plans for a comprehensive national skills agenda, addressing the shortage of skilled workers in critical sectors.
Regional Development: The strategy aims to address regional disparities in productivity and economic growth, with targeted investments in infrastructure and local industrial initiatives.
A central goal of the new strategy is to make the UK more competitive in attracting foreign investment. Reynolds expressed frustration at losing out to countries like France and Spain in recent years, stating, “I’m sick of the UK missing out on major investments”. To address this, the government is establishing a new statutory body, the Industrial Strategy Council, to be headed by Clare Barclay, the chief executive of Microsoft UK. This council will play a crucial role in implementing the strategy and advising on policies to win investment away from rival nations.
The strategy also aims to address some of the challenges posed by Brexit, including issues related to cross-border production and rules of origin in trade agreements. It seeks to position the UK as a competitive force in the global economy, despite no longer being part of the European Union’s single market.
Businesses up and down the country will be invited to react to the Industrial Strategy Green Paper, which will provide stakeholders with the chance to inform the strategy’s continued development and ensure it provides a tangible impact to people and communities right across the UK.
Reacting to news of the launch of the government’s Industrial Strategy, Shevaun Haviland, Director General of the BCC, said: “An industrial strategy is a key plank of the UK’s growth agenda; it is vital in securing the long-term stability that businesses need to plan ahead and invest.
“But it must deliver on that promise, and it needs to set out clearly how we will leverage the country’s competitive advantage. Alongside the key growth sectors of the economy, it must also integrate each region’s strengths into the plan.
“We need to send a message to the world that the UK is the best place to start, grow and invest in business, and create a new ‘Brand Britain 2.0’ that builds on the past but looks to the future.
“This means putting green and digital innovation at the heart of what we do, investing in infrastructure and skills, removing barriers to investment and putting more energy and resources into exporting. The more we sell to the world, the stronger our economy will be.
“Establishing a new supply chain taskforce, to increase resilience is also essential. The pandemic, war in Ukraine, and the Middle East crisis, have all highlighted the UK’s deep connectivity with global markets for energy, medicines, communications technology and manufacturing components.”
Clare Barclay, the chief executive of Microsoft UK, has been appointed to a new role overseeing the British government’s industrial strategy.
Barclay will chair the Industrial Strategy Advisory Council, which will provide advice to the government in partnership with businesses, unions and other stakeholders.
As the UK prepares to host a major investment summit in London, the government hopes this new Industrial Strategy will signal to global investors that Britain is open for business and committed to long-term economic growth and innovation.
