Reflection on the industrial strategy

One year ago today the government published its industrial strategy. The third in ten years. However, this strategy is different, because it comes at a time where the United Kingdom is at a crossroads to determine our post-Brexit future.

Last year, the government outlined in its industrial strategy the importance of business and government collectively working together to create a stronger, fairer economy to increase productivity across the entirety of the UK. This included creating the right conditions for enterprise to grow and create good jobs – and building a Britain fit for its future outside the EU.

Right approach

The current industrial strategy is the right approach, but we need to pick up momentum and working with the independent Industrial Strategy Council ensure it remains a truly long-term strategy for successive governments to embrace by measuring progress.

In the past year, there has been progress. The government has announced four grand challenges on major global tests including the future of Artificial Intelligence and data, our ageing society, the future of mobility and clean growth.

The strategy has also empowered local communities to develop their own local industrial strategies which are taking shape in places like the West Midlands, Greater Manchester, Leicestershire and Heart of the South West. And all areas across England will have strategies agreed by 2020, building upon a place’s strengths, but crucially addressing its weaknesses too.

The progress is real, but now the industrial strategy needs to move into the fast lane.

Further impetus needed

As we navigate our future, the fact that we lag someway behind global competitors in productivity – including countries such as the United States, Germany and France – highlights the need for much greater collaboration between local and national government, and greater collaboration with business too.

A new sense of momentum is needed including the need for government to set out a clear and concise vision to align government and business leaders. For the strategy to be a success, it also requires buy in from those working across UK and local governments as well as cross-party support so that - crucially - it has the longevity to make a meaningful difference.

Business should work in partnership with elected leaders to ensure that the strategy is a success that future leaders will want to retain and build on, however, business requires cross-party support on the need to accelerate the UK’s competitiveness.

There is also an opportunity to bring more impetus to the grand challenges by having more government attention matching that of the private sector, and by also clearly setting out the UK’s role in addressing these big global challenges.

Starting with the Prime Minister, each member of the Cabinet should ask themselves, will this policy support the delivery of the Industrial Strategy and progress towards the four challenges. These plans should not be business as usual, but instead outline a clear direction of change, and signal areas where they will collaborate with others across government, to create a real cross-cutting campaign across every part of Whitehall, and beyond.

Delivering its objectives

As we reach the exit door of the EU, the industrial strategy must enable government and business to step up and deliver on its aims if the UK is to remain a top destination for investment and innovation in the years ahead. A year since its launch, business is firmly behind the strategy and is determined to help it succeed to drive productivity and growth in all regions across the UK.

The gap between the most and least productive areas has been stubbornly persistent and therefore this strategy rightly sets out how to improve productivity and living standards across all regions of the UK.

The most productive area of the UK remains almost three times more productive than the least. As referenced in the CBI’s Unlocking Regional Growth report last year it is fundamentally important that the industrial strategy unlocks economic growth across the entirety of the UK. By closing the gap between the worst and best performing regions, we could add more than £200bn to the UK’s nominal GVA over the next decade.

Delivering a modern industrial strategy that will make the UK the best place in the world to invest, innovate and improve living standards is possible with sustained momentum. Let’s ensure the strategy receives the longevity required by setting out a clear vision, delivering joined up thinking and bringing further energy to the major challenges facing the world during this fourth industrial revolution.