Strategy makes a wecome return

In contrast to most other developed economies, in recent years the UK has failed to acknowledge the role that such a strategy has in ensuring long-term economic stability, growth, and global competitiveness.  Now, outlining its vision for a modern Industrial Strategy, the Government has published a comprehensive green paper titled "Invest 2035:The UK’s Modern Industrial Strategy". The intention is to foster long-term economic growth by targeting eight key sectors: advanced manufacturing, clean energy, creative industries, defence, digital technologies, financial services, life sciences, and professional and business services. The strategy aims to tackle barriers to growth and create more supportive environments for these sectors, working closely with businesses, regional governments, and industry experts to develop sector-specific plans. These plans are expected to be finalised in the spring of 2024 alongside a multi-year spending review.

Unsurprisingly given the "Invest 2035" moniker, one of the key focuses of the new strategy is to attract significant private sector investment. Recently, the government announced it had secured £63 billion of private funding for a range of projects including airport expansions, data centres, and green infrastructure. And maintaining this level of investment is crucial.

An essential aspect of the strategy is to make the UK more competitive in emerging industries such as clean energy and digital technology. For instance, supporting the clean energy sector aligns with the country's broader push towards achieving net-zero carbon emissions, while advancements in digital and technology are pivotal for modernising infrastructure and ensuring global competitiveness.

Overseeing the strategy will be the Industrial Strategy Advisory Council, chaired by Clare Barclay, CEO of Microsoft UK, which 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.

Reactions have been widely positive:

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."

President of the Institution of Mechanical Engineers, Dr Clive Hickman OBE, said: “The Government’s plan for a new Industrial Strategy is a positive step towards fostering innovation and growth across the UK. However, to truly realise the strategy's potential, it is essential to invest in the development of engineers who will drive the scale-up and deployment of these initiatives nationwide. Aligning skills programs with industry needs will be critical to ensuring we have the right talent to meet future demands.

"The Green Paper rightly states that a successful industrial strategy can only be delivered by working in partnership with all sectors of our economy. Taking a long-term view, with a stable regulatory environment and funding mechanisms, is also essential."

Charlotte Stonestreet

Editor