Uniting the UK through a modern industrial strategy

With a renewed focus on place, and the government committed to levelling up, now is the time to bring fresh momentum to the Industrial Strategy, and reignite the interests of business and government working in partnership to meet today’s challenges.

Launched in November 2017, the Industrial Strategy provides a framework for business and government to come together to tackle some of the biggest challenges facing society. It aims to ensure the UK is at the forefront of developing solutions and boosting UK productivity across the country.

In the two years since its launch, business and government have worked together to build upon the Industrial Strategy. But with a new decade, and a new government in place, now is the time to reflect on what has worked, and where we can build upon past work to achieve further success in the future.

A key component of the Industrial Strategy has been the local element including the cooperation between central government departments, Local Enterprise Partnerships (LEPs), and Combined Authorities in agreeing Local Industrial Strategies

Driving the UK forward

Whilst seven Local Industrial Strategies have been published to date, the plan of launching all strategies by Spring 2020 is behind schedule. But with the vast majority of LEPs having consulted with businesses in their area, and negotiated with government departments, we call on government to push ahead to ensure the remainder are published by summer 2020 to help accelerate the levelling-up agenda.

The buy in from across central government departments has been an essential element of the LISs. But more needs to be done to ensure there is enough funding available to enable LEPs and Combined Authorities to deliver on their implementation plans.

LISs are not the only part of the Industrial Strategy that can help deliver on growth. Grand Challenges are a central aspect to drive this, boosting productivity and ensuring the UK remains an attractive destination for investment.

Where the Grand Challenges have had greater success is when they have been linked to specific missions, as has been demonstrated by the net zero by 2050 target set out in the Clean Growth Grand Challenge. And we need to learn lessons from this, to apply to the other Grand Challenges.

Entering a new decade

As we enter the next phase of the Industrial Strategy, the CBI recommends that the government, with the full support of business, make 2020 a year of action, with fresh momentum injected into the Industrial Strategy and business engagement.

A rapid decision should be made on all pending Sector Deals to unlock pent up investment and provide clarity to the rest of the economy on what the bar is for any future deals.

In addition to all this, we must deliver upon a renewed emphasis on horizontal enablers, focusing on people and skills, infrastructure, tax and regulation, innovation and trade building upon the existing Industrial Strategy foundations.

Working with business, the government should scrutinise performance in all these areas against our international competitors and ensure the UK is equipped to win.

By building upon past success, we can ensure the UK makes inroads into tackling regional inequalities at home and lead the way on the global stage.

Please contact Jim Hubbard, Head of Regional Policy, if you’d like further information on this.