The CBI makes the voice of UK businesses heard.

Ensuring policy makers pay attention to the issues that matter most to business is at the heart of the CBI’s work.

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Industrial policy

What role should government play in intervening in the economy? How can we ensure policy across government joins up to deliver long-term, sustainable growth?

It’s time to think again about industrial policy

A laissez-faire approach to markets and sectors in the UK has created economic expansion that is too dependent on household consumption and government spending. This has caused the country to miss out on the benefits of sustainable growth linked to production - as explained in the CBI report A vision for rebalancing the economy - a new approach to growth.

A strategy for rebalancing in favour of investment and trade is required. Current interventions to stimulate growth are mostly tactical and poorly coordinated and do not provide confidence about how to create competitive advantage and capabilities for the long-term.

A new approach

Throughout the year, the CBI will be working with businesses to look at how to move the debate on from the extremes of laissez-faire or "picking winners". We are aiming to deliver practical recommendations for a new strategic approach to industrial policy.

A new industrial policy has to be more dynamic: resilient in the face of short-term pressures and flexible enough to adapt. The relationship between business and government must be redefined. It should:

  • Provide a longer-term vision for the economy that works with business and a strategy to realise this vision.
  • Align policies across government to reinforce each other, probably with new structures and new approaches to how policy is implemented.

Want to contribute to our work on industrial policy? Get in touch