Engineering news
The MPs call the plans contained in the industrial strategy green paper a continuation of existing policies rather than the step change that is required.
The 78-page report raises concerns about how effective the strategy can be, accusing the government of lacking "the political will" to deliver the key objectives of increasing productivity, skills, investment in infrastructure and support for research and development.
"An explicit industrial strategy recognises that many government policies inherently have an impact on different sectors, nations and regions that comprise the UK's economy," the report says.
"We have a choice as to whether the policies are implemented in an incoherent, ad hoc manner or work together toward a clear vision of the kind of economy we want."
The committee, comprised of six Conservative MPs, four from Labour and one independent, said the industrial strategy suggested "a significant shift" from short-term economic growth to longer-term planning, but also called for less rhetoric and a more precise focus on targets.
The report also recommends more power to be devolved to local authorities and for investment in research and development to be almost doubled to 3% of GDP.
In response, the manufacturers’ organisation the EEF said the committee’s suggestion that the industrial strategy should transcend the traditional ‘to do’ lists of existing policies will be widely supported by manufacturers who recognise that industrial success will stem from a structured, transparent, long-term plan.
“The concept of metrics which are annually monitored and provide guidance for government departments on where efforts and cash should be focused is absolutely the right starting point, as is the emphasis on horizontal policies,” said chief economist Lee Hopley. “These must be more than aspirations – it’s mission critical for the UK’s industrial strategy to deliver this time.”
Hopley said it was helpful to have this critique at the start of the process and BEIS must not waste this opportunity to get it right. “The advice and pointers in this report will help government to develop a more ambitious white paper," she added.
The UK's largest union Unite said the select committee report had confirmed what they had feared. "The government's industrial strategy simply is not good enough,” said Unite assistant general secretary Tony Burke. “It is certainly not up to the job of reinforcing our foundation industries ahead of Brexit.”
Burke asked ministers to think more radically about what the economy needs for the UK to retain its status as a global player in manufacturing. He also called on the chancellor to support skills and jobs through investment. "The work to prepare our industry for Brexit has to be done now, not in some far away future," he added.
In response, a BEIS spokesman said: "Our modern industrial strategy represents an ambitious long-term vision for the UK that will build on our strengths as a country and deliver a high-skilled economy for the years ahead.
"The green paper is the beginning of an open dialogue to develop this strategy - we welcome contributions to the consultation process and will consider the findings of this report carefully."