Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Review internal structures and resourcing to align with Industrial Strategy objectives and emerging issues.
Conclusion
There is a risk that the Department is not set up internally to support the aims of the forthcoming Industrial Strategy and to respond to ongoing issues facing UK businesses. The composition of sector teams in the Department’s Business Group varies by size and grade distribution, and is not always related to the priority, size or needs of the sectors they are intended to support. The Department has said that a review of its structure is ongoing, to clarify responsibilities and to allocate resources to the top priority sectors. However, there does not seem to be an overarching approach which considers the needs of individual sectors while accounting 5 for pan-sector issues such as skills, regulation, or geography. Using the forthcoming Industrial Strategy as a clear framework to direct and prioritise its activity is an important next step to address this. The Department must also be able to respond to urgent and emerging issues that businesses face. It needs to allocate and flex resources to meet the needs of important sectors such as steel, which is subject to fluctuating external challenges. recommendation The Department should critically review its internal structures and resourcing model to ensure they reflect the objectives and demands of the forthcoming Industrial Strategy. This could include, for example: its approach to individual sectors, including foundational sectors such as steel; pan-sector issues; geography; and how it will ensure it can respond effectively to emerging issues that affect UK businesses.
Government Response Summary
The government states it has transitioned the Industrial Strategy Unit into a permanent delivery unit and has set out plans to restructure teams to focus on Industrial Strategy delivery, with this transformation already in progress and mostly completed by Spring 2026.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Industrial Strategy Unit has transitioned into a permanent delivery unit to coordinate implementation and policy development. The Industrial Strategy provides a framework to coordinate cross-government work to ensure implementation is a government-wide effort. The department has set out plans to restructure teams and focus efforts on Industrial Strategy delivery. This is already in progress and will be mostly completed by Spring 2026. As part of this transformation, the department will ensure a continued focus on the IS-8 growth- driving sectors and on supporting all of government to focus on growth-driving initiatives.