This report makes the case for an industrial strategy that will build on the strengths in our economy, address the weaknesses and improve living standards for everyone.
As a place to do business the UK has exceptional strengths such as easy access to finance, a world-class science base, an enviable track record in creativity and innovation, a strong reputation for rule of law and values of honesty and predictability.
But at the same time the UK’s productivity is lower than some of our major competitors - too many of our firms produce less per employee than similar firms in Germany and the US. And there is too much variation in economic performance within the UK, between different regions and devolved nations.
Industrial strategy means having a more focused, joined-up approach to growing our economy and addressing these challenges. Government and business working in partnership with a shared vision and common objectives.
As the Government finalises its approach the CBI has put forward 6 priorities which would deliver a compelling, effective and lasting strategy for the UK:
- Build a clear UK2030 vision: a uniting long-term sense of purpose – The industrial strategy needs a clear vision supported by tangible key performance indicators and a brand that galvanises all parts of the economy.
- Fix the foundations: skills, infrastructure, energy, a pro-enterprise tax environment – Government can help businesses of all sizes and sectors by improving skills policy, delivering infrastructure projects (small-scale and large-scale), establishing an affordable plan for emissions reductions and maintaining a stable tax framework.
- Put innovation at the heart of the strategy – Our competitive advantage depends on our ability to invest in R&D and develop and commercialise new ideas as well as our ability to adopt technology and better ways of working to become more productive at a firm level.
- Empower devolved nations, London and regions and hold them accountable – The industrial strategy must increase living standards for everyone living in the UK and enabling all regions to develop and champion their own economic strengths is the best way to deliver it.
- Keep sector strategies simple and effective – Support for sectors should be based on clear criteria to ensure collaboration is genuinely productive.
- Make it last: clear indicators and independent monitoring – To be successful the industrial strategy must be long term in its outlook, measure progress against clear key performance indicators and be independently monitored to help ensure that it survives changes of Government.