Source · Select Committees · Public Accounts Committee

Recommendation 1

1 Accepted

Committee reviewed evidence on government support for UK’s priority industry sectors

Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business and Trade (the Department) and HM Treasury on support for the UK’s priority industry sectors.1
Government Response Summary
The government states it conducted a detailed consultation, introduced a cross-government Account Management initiative with dedicated account managers and ministerial engagement, and established a dedicated area to coordinate business engagement. It also published 'The UK’s Modern Industrial Strategy' and will explore establishing dedicated Sector Offices.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The Department for Business and Trade conducted a detailed consultation with business through the green paper Invest 2035: The UK’s Modern Industrial Strategy in November 2024, which covered how to build the most effective relationship with, and service for, business. The Secretary of State subsequently introduced a cross-government Account Management initiative, appointing dedicated account managers to lead strategic relationships with key businesses. Account managers coordinate across departments to ensure consistent, streamlined engagement with businesses through regular, unified communication. Ministers are also required to engage these businesses regularly to foster deep and meaningful dialogue and address the needs of business. The department has established a dedicated area to coordinate business engagement and insights, enabling government to build a coherent understanding of business needs that enhances capability and promotes best practice across departments. It has engaged mission leads across government to instil the importance of engaging business to inform policymaking. The No.10 Partnership Unit and DBT non-executive directors are afforded regular opportunity to share their expertise with account managers and senior officials, and a Centre of Excellence function within the Account Management initiative facilitates the sharing of best practice. The department published Backing your business: our plan for small and medium- sized businesses in July 2025, which outlined government’s support offer to business, including launching the Business Growth Service (BGS) which will simplify how businesses across the UK find government advice and support, including through a new streamlined digital offer – business.gov.uk. In The UK’s Modern Industrial Strategy, published in June 2025, a further whole-of- government plan to support industry is set out, particularly focusing on the eight growth-driving sectors (IS-8) and the frontier industries within them. Where there is appetite from industry and aligned to government’s wider programme of public sector reform, government will explore establishing dedicated Sector Offices to support the Industrial Strategy growth-driving sectors and co-deliver Sector Plans. This will build on successful models like the Office for Life Sciences, bringing together policy and delivery interests and expertise that currently sit across multiple departments, giving businesses an immediate first point of contact to engage, whatever their issue.