Growing interest in reigniting regions

Intentions of the new ministerial team including Business Secretary Andrea Leadsom and Communities Secretary Robert Jenrick have started to emerge over the last few weeks including from Conservative Party Conference last month. The past few weeks has cemented the government’s interest in place, however, their view on the future of Industrial Strategy remains unclear.

Increased interest in the role of place

A common theme emerging from both BEIS and MHCLG, and from the Prime Minister himself is the importance of place. Parliament itself is also interested, and we have submitted the business view to the Select Committee inquiry investigating progress on devolution in England.

The government has added £1bn to the Towns Fund (formerly the Stronger Towns Fund which has been combined with the Future High Streets Fund), now totaling £3.6bn. Details as to how the funds will be administered remain scarce, but 100 towns and cities are expected to work with government to improve transport, broadband connectivity, skills and culture.

The increased interest in place comes as we’ve just launched our latest report Powering Up Places outlining three steps to reignite regions. We’ve already had positive feedback from members, government and stakeholders. It’s been shared with ministers where we hope to discuss in further detail over the coming weeks given government’s plans to soon consult on devolving powers in England announced by the Chancellor.

When I meet members it’s clear there’s a strong desire to ensure every place across the UK can build on its strengths to reach its full economic potential. One of the Prime Minister’s first speeches in his new role was in Manchester and was followed up this past month in Rotherham at the Convention for the North where the CBI was represented. In Rotheram, he spoke about the ambition to link more powers being devolved to the local level to the need for accountability.

Once our future with the EU is settled, I expect there will be a groundswell of support to ensure we close the productivity gap within regions. As we identified in Unlocking Regional Growth this would equate to £200bn added to the UK economy over 10 years. Given the growing interest, to become involved in shaping next steps on English devolution including opportunities and concerns of business please contact Hannah Richmond.

Uncertain future of the Industrial Strategy

However, government’s future intentions for the Industrial Strategy remain murky as it approaches its two-year anniversary next month. I recently attended a roundtable discussion where a senior official suggested there’s always been an industrial strategy whether past governments openly talked of it or not.

It doesn’t appear government has any plans to celebrate or even mark the two-year anniversary which may be telling, and I believe we should expect some changes over the coming months. It seems government agrees with what has been set out as part of the Grand Challenges, and to an extent the Sector Deals and Local Industrial Strategies. However, they seem uncomfortable uttering the words ‘Industrial Strategy’.

We’re currently undertaking our own assessment of the Industrial Strategy and would welcome your views. James Sloan is working with members now to assess the Grand Challenges, Sector Deals and Local Industrial Strategies against three areas: Vision, Partnership and Implementation. There’s still an opportunity to help shape if you’re not already involved.

Busy month of engagement on several fronts

Following our support, the government gave the eastern stretch of East West Rail ultimately connecting Oxford to Cambridge the status of Nationally Significant Infrastructure Project bringing it one step closer to happening. We also were represented at a Britain’s Leading Edge roundtable where rural authorities are working to highlight rural areas’ important role in the economy.

In London, there was the successful launch of the annual London Business Survey highlighting business sentiment. It notes 74% of respondents cite the importance of attracting and retaining talent, while increasing workplace diversity and inclusion as the top business priority. We separately brought together leaders of the South East and Thames Valley Local Enterprise Partnerships (LEPs) to consider how we can convene the separate LEPs to ensure robust business engagement across CBI’s membership.

Lastly, engagement with places developing their Local Industrial Strategies, despite the uncertainty, continues across England in places like Liverpool, Leeds and Sheffield which has meant several meetings across the country. As always, please get in touch to help shape these emerging economic strategies.

If you have questions or would like to become involved in our regional growth work please don’t hesitate to contact me.