Recommendations & Conclusions
13 items
1
Recommendation
First Report - Post-pandemic economic g…
Acknowledged
The economic outlook has been fundamentally altered by the Covid-19 pandemic and by Brexit, and today’s circumstances therefore require a revised focus in industrial policy. However, some of the foundations and long-term challenges that the 2017 strategy sought to address are still relevant today and should be carefully considered in …
Read more
The economic outlook has been fundamentally altered by the Covid-19 pandemic and by Brexit, and today’s circumstances therefore require a revised focus in industrial policy. However, some of the foundations and long-term challenges that the 2017 strategy sought to address are still relevant today and should be carefully considered in the new Plan for Growth.
Show less
Government response AI summary
The government acknowledges the report and states its 'Build Back Better: our plan for growth' addresses a revised focus for industrial policy, incorporating considerations for current economic challenges and stakeholder engagement, rather than committing to new specific actions.
Read full response →
Department for Business and Trade
3
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
Coordinated and strategic industrial policy is required if the Government is to meet its growth, levelling up and net zero ambitions. It appears that many aspects of the Plan for Growth will be overseen by a cross-cabinet committee chaired by the Prime Minister and the Committee welcomes this opportunity to …
Read more
Coordinated and strategic industrial policy is required if the Government is to meet its growth, levelling up and net zero ambitions. It appears that many aspects of the Plan for Growth will be overseen by a cross-cabinet committee chaired by the Prime Minister and the Committee welcomes this opportunity to apply the highest levels of political priority to the problems the Industrial Strategy was trying to solve.
Show less
Government response AI summary
The government states it is reforming its planning and performance framework, embedding Outcome Delivery Plans, and implementing a new reporting system to support the delivery of objectives under the Plan for Growth.
Read full response →
Department for Business and Trade
9
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
Uncertainty about the relevance or content of the Industrial Strategy suggests that, in combination, the strategy’s multiple overlapping features made it overly complex and obscured its purpose. The extent to which the strategy’s Foundations and Grand Challenges shaped the day-to-day experience of the business people who participated in our roundtables …
Read more
Uncertainty about the relevance or content of the Industrial Strategy suggests that, in combination, the strategy’s multiple overlapping features made it overly complex and obscured its purpose. The extent to which the strategy’s Foundations and Grand Challenges shaped the day-to-day experience of the business people who participated in our roundtables was limited, as was their understanding of granular elements of the strategy. Stakeholders in the devolved nations also noted insufficient opportunities for engagement with the Government on these fundamental aspects of the Strategy.
Show less
Government response AI summary
The government recognises the importance of stakeholder collaboration and states that several existing fora allow it to engage effectively, but does not commit to new measures to address past insufficient engagement or complexity concerns.
Read full response →
Department for Business and Trade
19
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
The Secretary of State’s commitment to maintain the existing sector deals does not fully address long-term concerns about the Government’s approach to sectoral policy. Whether the Government intends to refocus and prioritise its sectoral Post-pandemic economic growth: Industrial policy in the UK 51 approach, as suggested in its evidence, remains …
Read more
The Secretary of State’s commitment to maintain the existing sector deals does not fully address long-term concerns about the Government’s approach to sectoral policy. Whether the Government intends to refocus and prioritise its sectoral Post-pandemic economic growth: Industrial policy in the UK 51 approach, as suggested in its evidence, remains unclear. We are concerned that the Government’s current approach is providing business with neither clarity nor certainty.
Show less
Government response AI summary
The government reaffirms its commitment to strategic partnerships with businesses and states the Plan for Growth will set out a vision for high-growth sectors, but does not provide the specific clarity or certainty on its approach to sectoral policy requested by the committee.
Read full response →
Department for Business and Trade
21
Recommendation
First Report - Post-pandemic economic g…
Acknowledged
The Government should maintain sector deals, not least to ensure an appropriate and strategic balance between vertical and horizontal policy interventions as described in Chapter 3. However, we are concerned that outside the structure of the Industrial Strategy, sector deals should not lose their strategic purpose—either for pursuing comparative advantage, …
Read more
The Government should maintain sector deals, not least to ensure an appropriate and strategic balance between vertical and horizontal policy interventions as described in Chapter 3. However, we are concerned that outside the structure of the Industrial Strategy, sector deals should not lose their strategic purpose—either for pursuing comparative advantage, or as a defensive intervention—and instead become piecemeal solutions to sectoral problems.
Show less
Government response AI summary
The government acknowledges the importance of working collaboratively with stakeholders to address business challenges and opportunities, but does not commit to maintaining sector deals or address concerns about their strategic purpose.
Read full response →
Department for Business and Trade
25
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
The process of developing Local Industrial Strategies was a useful exercise for many areas, even where no strategy was ultimately agreed with central Government. However, it is unclear what impact they have had in practice at either increasing local growth and productivity, or contributing to specific aims of the national …
Read more
The process of developing Local Industrial Strategies was a useful exercise for many areas, even where no strategy was ultimately agreed with central Government. However, it is unclear what impact they have had in practice at either increasing local growth and productivity, or contributing to specific aims of the national Industrial Strategy such as the Grand Challenge missions.
Show less
Government response AI summary
The government acknowledges past work on Local Industrial Strategies and states it is encouraging local places to set their own economic strategies under the Plan for Growth, building on previous efforts.
Read full response →
Department for Business and Trade
27
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
The Local Industrial Strategy model faced key limitations, including: a lack of associated long-term funding that could help unlock local investments; variable local institutional capacity to develop, implement and evaluate local strategies; limited priority and capacity within central Government to support the development of 52 Post-pandemic economic growth: Industrial policy …
Read more
The Local Industrial Strategy model faced key limitations, including: a lack of associated long-term funding that could help unlock local investments; variable local institutional capacity to develop, implement and evaluate local strategies; limited priority and capacity within central Government to support the development of 52 Post-pandemic economic growth: Industrial policy in the UK local strategies; and a lack of clarity on how far the national vision could be adapted to local circumstances, or by what criteria the local strategies’ success could be judged. Many of these limitations are related to the powers, funding and support available to local areas to effectively develop and implement strategic local economic policies, appropriately informed by national priorities.
Show less
Government response AI summary
The government agrees its policies should support the whole economy and deliver for all parts of the UK, but does not address the specific limitations identified with the Local Industrial Strategy model.
Read full response →
Department for Business and Trade
28
Recommendation
First Report - Post-pandemic economic g…
Acknowledged
We conclude that Local Industrial Strategies are useful and should be continued in the future, but that the Government should set out how it will ensure that local areas are equipped with the skills, resource and incentives needed to produce and deliver effective local industrial policy. It should make engaging …
Read more
We conclude that Local Industrial Strategies are useful and should be continued in the future, but that the Government should set out how it will ensure that local areas are equipped with the skills, resource and incentives needed to produce and deliver effective local industrial policy. It should make engaging with and supporting local areas to develop such strategies (including in the devolved nations) a higher priority and should publish a national assessment of the opportunities and challenges in each region and potential points of collaboration across the country. Government should confirm whether it sees LEPs as the relevant delivery body for local industrial strategies in England and, if so, provide additional dedicated support for LEPs to build greater analytical, evaluation and policymaking resource.
Show less
Government response AI summary
The government agrees that its policies should support the whole economy but does not provide specific details on how it will equip local areas, prioritize engagement, publish assessments, or confirm LEPs as delivery bodies for local industrial strategies.
Read full response →
Department for Business and Trade
30
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
The process of designing Local Industrial Strategies effectively underpinned strategic conversations about industrial policy at the local level. In particular, the insights and networks they generated among local stakeholders could support the effective use of central Government funding for levelling up and community investment. Discontinuing this underpinning structure could hinder …
Read more
The process of designing Local Industrial Strategies effectively underpinned strategic conversations about industrial policy at the local level. In particular, the insights and networks they generated among local stakeholders could support the effective use of central Government funding for levelling up and community investment. Discontinuing this underpinning structure could hinder this objective and may be especially disruptive as the Government prepares to launch the Shared Prosperity Fund. It is also unclear through what mechanism coordination and co-creation of industrial policy between local business, local government, and central Government will be achieved in future.
Show less
Government response AI summary
The government acknowledges its past work on Local Industrial Strategies but notes a changed economic environment, stating that local places are encouraged to set their own economic strategies building on past work, and that existing LISs will continue to be considered.
Read full response →
Department for Business and Trade
33
Recommendation
First Report - Post-pandemic economic g…
Acknowledged
The Government should clarify through what mechanism it intends to incorporate local industrial and economic insights and intelligence into future national-level policies—in particular, into the Plans, Strategies and Reviews listed in the Plan for Growth which the Government has said will be published within the next 12 months. (Paragraph 117) …
Read more
The Government should clarify through what mechanism it intends to incorporate local industrial and economic insights and intelligence into future national-level policies—in particular, into the Plans, Strategies and Reviews listed in the Plan for Growth which the Government has said will be published within the next 12 months. (Paragraph 117) Funding the industrial strategy
Show less
Government response AI summary
The government agrees on the importance of local insights and states it will continue to work with devolved administrations and local leaders, but clarifies no specific mechanism, leaving decisions on engagement approaches to individual departments.
Read full response →
Department for Business and Trade
34
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
The growth capital gap is a brake on the ability of small businesses to innovate and accelerate their growth. Venture capital in the UK does not always fill the gap and support the right businesses in the right places at the right time. There remains a sectoral and geographic vacuum …
Read more
The growth capital gap is a brake on the ability of small businesses to innovate and accelerate their growth. Venture capital in the UK does not always fill the gap and support the right businesses in the right places at the right time. There remains a sectoral and geographic vacuum which is filled by investors from outside the UK.
Show less
Government response AI summary
The government reaffirms its commitment to strategic partnerships and notes the Plan for Growth's intention to set a vision for high-growth sectors, but it does not specifically address the identified growth capital gap or vacuum.
Read full response →
Department for Business and Trade
35
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
International investment in British businesses can support growth and is positive on an individual basis. The flow of businesses and IP out of the UK, however, as a consequence of the international venture capital model is cause for concern. The drift towards foreign investment illustrates that scale ups and innovative …
Read more
International investment in British businesses can support growth and is positive on an individual basis. The flow of businesses and IP out of the UK, however, as a consequence of the international venture capital model is cause for concern. The drift towards foreign investment illustrates that scale ups and innovative businesses require alternative sources of investment to achieve the maximum long-term benefit for the UK economy in addition to short-term rewards for entrepreneurs.
Show less
Government response AI summary
The government reiterates its commitment to building long-term strategic partnerships with businesses and to setting out a vision for high-growth sectors, but does not outline specific plans to provide alternative investment sources to retain IP and businesses in the UK.
Read full response →
Department for Business and Trade
42
Conclusion
First Report - Post-pandemic economic g…
Acknowledged
Whilst the future of the Grand Challenges is uncertain the fundamental issues which underpinned them remain pertinent. A growing R&D budget channelled through the Industrial Strategy Challenge Fund and the Advanced Research and Invention Agency, in combination with a modification of state aid rules and procurement, has significant potential to …
Read more
Whilst the future of the Grand Challenges is uncertain the fundamental issues which underpinned them remain pertinent. A growing R&D budget channelled through the Industrial Strategy Challenge Fund and the Advanced Research and Invention Agency, in combination with a modification of state aid rules and procurement, has significant potential to promote the growth and innovation required to meet the Grand Challenges. However, there remains a pervasive sense of uncertainty regarding the future funding environment and how industrial policy and the Plan for Growth will interact with commercial innovation.
Show less
Government response AI summary
The government states that previous Grand Challenges work is now core policy and a recently published Innovation Strategy sets out a renewed approach to mission-based innovation, including new Missions to support its priorities.
Read full response →
Department for Business and Trade