Prime minister Theresa May is to launch proposals for a more hands-on industrial strategy to bolster the UK’s transition to a post-Brexit economy.
The strategy green paper offers businesses the chance to strike new ‘sector deals’, driven by the interests of firms and the people they employ, to address sector-specific challenges and opportunities.
The government said it will be prepared to offer a range of support as part of these deals, including addressing regulatory barriers to innovation and growth, looking at how it can use trade and investment deals to increase exports, or supporting the creation of new institutions to provide leadership, support innovation or boost skills.
The industrial strategy is part of the Plan for Britain set out by the prime minister last week.
The green paper also sets out plans to strengthen institutions in each part of the country to support their specific strengths - whether it’s building up local trade bodies, or creating new educational institutions, making it easier for business to access finance outside London or getting a stronger business voice into local government.
Prime minister Theresa May said that the new industrial strategy will be underpinned by a new approach to government, “not just stepping back but stepping up to a new, active role”.
The green paper sets out technologies where Britain has strengths in research and development which could be supported through the government’s industrial strategy Challenge Fund, including: smart energy technologies; robotics and artificial intelligence and 5G mobile network technology. This fund is part of £4.7 billion of additional R&D funding announced by the prime minister in November 2016.
The strategy also aims to mimic success stories in sectors like automotive and aerospace, where individual firms have organised their sectors backed by institutions or organisations, such as the Aerospace Growth Partnership.
Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, said: "The end result of this process must be an industrial strategy that lives up to the promise of driving different behaviours and outcomes for the British economy. This requires the whole of government working together to support it, with clear leadership from the prime minister and her whole cabinet.”
The government said that it welcomes work on early sector deals, including from Richard Parry-Jones on the transition to ultra low emission vehicles, Juergen Maier on industrial digitalisation and Lord Hutton on improving UK competitiveness and skills in the nuclear industry.
Meanwhile, as part of the visit to the north west, the government is also announcing a cash boost of £556 million for the Northern Powerhouse to help create jobs, support businesses and encourage growth.
Goole Intermodal Terminal linking rail, sea and road, a 21st century conference centre in Blackpool, and a new innovation fund for Manchester and Cheshire businesses are just some of the locally-chosen projects set to benefit over the next few years.
Carolyn Fairbairn, CBI director-general, said: “A modern industrial strategy will be a landmark opportunity to build a successful, modern economy as the foundation for a prosperous, fairer and more inclusive society.
"It must help fix the country’s productivity problems and remove the regional inequalities that have dogged our country for generations, having a positive impact on living standards, wages and the future opportunities of many people."
Dr Colin Brown, director of engineering at the Institution of Mechanical Engineers, said: “The government’s pledge to focus on developing technical skills is an encouraging step. The UK urgently needs to raise its game in the development of a highly-skilled, technically-trained workforce to underpin our future economy, particularly in light of the UK’s withdrawal from the EU.
“There needs to be greater investment in a range of broad technical skills to develop an agile and resilient workforce rather than simply job-specific training.”