Government launches Industrial Strategy consultation
Consultation on the progression of the clean energy and the decarbonisation of transport have been outlined in the UK Government’s new Industrial Strategy green paper released today (14 October).
The document, which the government said was open for consultation, sets a broad brushstroke to the UK’s industrial strategy as it seeks to discover areas for focus.
Dubbed Invest 2035: the UK’s modern industrial strategy, the green paper highlights where the government’s focus will lie and which “offer the highest growth opportunity for the economy and business”.
The document, which uses the word “growth” 276 times, outlined eight growth-driving sectors:
- Advanced Manufacturing
- Clean Energy Industries
- Creative Industries
- Defence
- Digital and Technologies
- Financial Services
- Life Sciences
- Professional and Business Services.
It said: “The Industrial Strategy will channel support to eight growth-driving sectors – those in which the UK excels today and will propel us tomorrow. They include the services and manufacturing industries that present the greatest opportunity for output and productivity growth over the long-term.
“Our Strategy is unreservedly pro-business, engaging on complex issues that are barriers to investment, like skills, recruitment of international talent, data, R&D, technology adoption, access to finance, competition, regulation, energy prices, grid connections, infrastructure, and planning – all through the lens of promoting investment.”
The government said the next stage of development of the Industrial Strategy would be to “prioritise subsectors” within the eight “growth-driving” sectors to “meet our objectives and where there is evidence that policy can address barriers to growth”.
Targeted plans
“Ambitious and targeted” plans for each sector will be designed in partnership with business, devolved governments, regions, experts, and other stakeholders, through bespoke arrangements tailored to each sector.
In terms of specifics, the government said it was “committed to devolving significant powers to Mayoral Combined Authorities across England, giving them the tools they need to grow their sectoral clusters and improve the local business environment through ambitious Local Growth Plans”.
In terms of net zero it said the objectives for the industrial strategy are:
- Capture the growth opportunities of the Clean Energy Mission and Net Zero transition.
- Identify and support Clean Energy industrial sectors with the greatest growth potential.
- Align sector plans with Net Zero and environmental objectives.
The regional growth objectives are:
- Unleash the potential of UK cities and regions, taking into account regional growth when considering growth-driving sectors.
- Consider where sectors and relevant capabilities are located to identify clusters that can drive growth.
Mission
Writing about its climate plans, the government said it had a “world-leading track record of decarbonisation” and its “Clean Energy Mission” will “enable the UK to achieve clean power by 2030 and accelerate the Net Zero transition across the economy”.
It also said it would use “public sector data as a driver of growth” using assets such as transport and environment data as an “essential part of the UK’s broader, forward-looking approach to data access, with better use of public data economy-wide while ensuring citizens’ data are protected”.
The paper also argued that sectors also require high quality infrastructure and transport connectivity, stating a “resilient, safe, and secure transport network provides access to social and economic opportunity, and is fundamental to business investment and location decisions”.
A lack of infrastructure is holding back the growth of major city regions such as Manchester, where lack of transport is estimated to cause a productivity gap of £8.8 billion each year, it said.
It also highlighted again, following announcements in July, how it would update the National Policy Statements within 12 months to unlock infrastructure development.
It said: “The wider regulatory landscape and the ability of the regulators to drive growth are key parts of the wider Growth Mission. The Government will provide more information on its approach to regulation in due course.”
The document also highlighted electric vehicle batteries as an example of the UK’s “manufacturing strengths”.
It said: “For example, up to 56GWh of electric vehicle battery capacity is planned for the UK so far, and the UK is on its way to reaching the 2030 capacity requirements expected by the sector,61 helping it to remain a globally competitive investment destination.
“The UK manufacturing supply chain is world renowned for its specialist strengths in high quality and innovative products.”
A public consultation on the strategy is now open here for the public and private sector until 24 November to comment on the plans here.
The Industrial Strategy, alongside the sector plans, will be published in spring 2025, aligned with the multi-year Spending Review.
A statement by the Chancellor of the Exchequer Rachel Reeves and Business Secretary Jonathan Reynolds in the paper said:
“Our Industrial Strategy will be driven by what business needs to succeed.
“That is what this Green Paper is for. An Industrial Strategy developed in a vacuum, detached from practical realities, is no strategy at all. It is essential that this Strategy is informed by the experiences of the individuals, businesses, and local communities it will support. We need the input of mayors and multinationals, councils and CEOs, trade unions, devolved governments, and experts to deliver prosperity through partnership.
“That is why we are asking for your input now to shape what will be a shared endeavour between private enterprise and public good. We are enormously grateful for any time you can give to answering the questions in this Green Paper, so that we can be steered not by abstracts, but by experience and evidence.”
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