Government launches Industrial Strategy green paper

Business and Trade Secretary Jonathan Reynolds and the Chancellor of the Exchequer Rachel Reeves have published a green paper to kickstart delivery of the government’s modern Industrial Strategy.

Clare Barclay, CEO of Reading-headquartered Microsoft UK, will chair the government’s new Industrial Strategy Advisory Council, which will provide expert advice developed in partnership with business, unions, and stakeholders from across the UK.

The government is planning to focus its modern Industrial Strategy on advanced manufacturing; clean energy industries, creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.

Clare said: "As chair of the Industrial Strategy Advisory Council, I will ensure it provides a clear and strong voice on behalf of business, nations, regions, and trade unions, as we invest for the future to ensure that our prosperity is underpinned by robust growth in key sectors right across the country.

"Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the advisory council will play a central role in shaping and delivering this plan."

The green paper was published today on the first day of the government's Global Investment Summit.

Business and Trade Secretary Jonathan Reynolds MP said: "Our modern Industrial Strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next 10 years and beyond. "

"Clare’s wealth of talent and experience will help ensure the Industrial Strategy delivers its mission of unleashing the potential of high productivity sectors to spur growth, spread wealth, and drive-up employment across the UK."

Chancellor of the Exchequer Rachel Reeves MP said: "I have never been more optimistic about our country’s potential. We have some of the brightest minds and greatest businesses in the world. From the creative industries and life sciences to advanced manufacturing and financial services."

In the King’s speech, the government committed to putting the council on a statutory footing – giving it powers and responsibilities and ensuring it will be permanent and independent.  

Ahead of establishing a statutory body, the government is introducing an interim advisory council.

Make UK CEO Stephen Phipson said: "We live in a world which is massively different to a decade ago and simply leaving the economy and industrial strategy to the free market is an ideology which is long past its sell by date. This is a welcome first step in addressing the achilles heel of the economy which has left the UK an outlier among advanced countries. It sets out a clarity of vision for how the resources of Government and, in particular, each department can be convened towards a single objective of long term growth across all regions.

Airbus UK Chairman John Harrison said: "Airbus welcomes the inclusion of advanced manufacturing in the Government’s Industrial Strategy as a vital opportunity to build on the successful partnership between government and the aerospace sector.  

"As one of the most technologically advanced businesses in the UK, we also welcome the strong focus on innovation, which is crucial to driving future growth and maintaining the UK’s global competitiveness in aerospace and defence."

Rain Newton-Smith, CBI CEO, said: “Given the size of the UK economy, a successful industrial strategy cannot seek to be everything to everyone. By focusing on eight highly productive sectors, the government is identifying where the UK can compete to win on the global stage.   

“But with businesses of all sizes and sectors vital to the government’s growth ambitions, the industrial strategy must also be the vehicle for creating a thriving investment environment for the wider business community.  

“With Clare Barclay of Microsoft chairing the council, she will bring a wealth of knowledge and experience and will be a strong voice championing business and workers across the UK to drive growth that delivers prosperity for all.”