The UK government has issued a new Industrial Strategy, which will include targeted support for the areas of the country and economy that the government believes have the greatest potential to grow, while introducing reforms that aim to make it easier for all businesses.
The plan focuses on eight sectors in particular, which represent about a third of the economy: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. The government is publishing sector plans as well as the overarching plan, and we will publish details on some of the sector plans in the next week or so.
Overall, the Strategy sets out a framework to deliver economic policy over the next ten years. It describes the government's priorities, what it plans to do first to meet those priorities, future measures to deliver the plans as well as the criteria for their success and failure. More generally, the government says that it wants to reduce the regulatory burden on businesses, and refers to the Strategic Steer that it gave to the CMA earlier this year. It also contains measures about training people in necessary skills, attracting highly skilled immigrants, reducing electricity costs which are more expensive than other European countries, reforming the planning framework and expanding access to finance.
In addition to the Strategy and the sector plans, the government has also published a report on technology adoption. It explored the barriers hindering the adoption of transformative digital tech in the private sector which include issues such as cost and regulation. The government has set out various measures under the categories of business support, AI skills and awareness and government strategy and coordination.
The government says that an independent advisory council with 16 members will be created to monitor the Strategy's delivery, including tracking business investment, gross value added, employment and wages, productivity growth and exports. However, it's not clear what powers it will have to direct changes if it feels that the Strategy is not delivering sufficient benefits.
The market reaction to the Strategy has generally been positive, although there is some debate about whether it will benefit small businesses. It's clear that an injection of enthusiasm and investment in UK PLC is much needed as we approach one year in office for this Govt.
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