Select Committee · Business and Trade Committee

Post-pandemic economic growth: Industrial Strategy

Status: Closed Opened: 23 Jul 2020 Closed: 27 Sep 2021 19 recommendations 25 conclusions 1 report

In our inquiry into Post-pandemic economic growth: Industrial strategy we will look at the options available to Government to secure our economic recovery from the impact of the coronavirus pandemic. We will want to examine whether the Government’s current industrial strategy is fit for purpose, whether it is genuinely strategic, and whether it is focused … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
First Report - Post-pandemic economic growth: Industrial po… HC 385 28 Jun 2021 44 Responded

Recommendations & Conclusions

17 items
6 Conclusion First Report - Post-pandemic economic g… Not Addressed

The Secretary of State’s decision to axe the Industrial Strategy Council is difficult to reconcile...

The Secretary of State’s decision to axe the Industrial Strategy Council is difficult to reconcile with his conclusion that the Council did a good job - a conclusion with which we agree. The more challenging context today enhances the necessity of independent oversight. The abolition of the Council is not … Read more

Government response AI summary
The government provides a detailed overview of its Plan for Growth and strategic objectives across infrastructure, skills, and innovation, but completely ignores the committee's concern regarding the abolition of the Industrial Strategy Council and the necessity of independent oversight.
Read full response →
Department for Business and Trade
7 Conclusion First Report - Post-pandemic economic g… Not Addressed

Abolishing the Industrial Strategy Council was a retrograde step.

Abolishing the Industrial Strategy Council was a retrograde step. We are concerned that the Government has disregarded and rejected the benefit of independent long- term analysis and evaluation. Without independent scrutiny implementation of industrial policy will be compromised at best and ineffective at worst. The Council’s analysis and expertise in … Read more

Government response AI summary
The government's response discusses the precedent of not sharing NERT meeting information, failing to address the committee's concern about the abolition of the Industrial Strategy Council and the need for independent scrutiny.
Read full response →
Department for Business and Trade
8 Recommendation First Report - Post-pandemic economic g… Not Addressed

The abolition of the Industrial Strategy Council removes the opportunity to provide independent analysis over...

The abolition of the Industrial Strategy Council removes the opportunity to provide independent analysis over industrial policy in the long term. The Government must ensure that effective scrutiny is put in place in another form in order to measure outcomes and constantly evaluate the strategy. The Council’s abolition removes the … Read more

Government response AI summary
The government's response addresses the precedent of not publishing NERT meeting minutes, but it does not address the recommendation to ensure alternative effective scrutiny for industrial policy after the Industrial Strategy Council's abolition.
Read full response →
Department for Business and Trade
10 Recommendation First Report - Post-pandemic economic g… Not Addressed

The UK Government should clarify how the devolved Governments will be involved in the design...

The UK Government should clarify how the devolved Governments will be involved in the design and delivery of future policies and strategies associated with the Plan for Growth. The UK Government should implement lessons from the devolved Governments’ experience of engaging with the UK Government on policies relating to the … Read more

Government response AI summary
The government states there has been no change in government machinery or departmental responsibilities, completely failing to clarify how devolved governments will be involved in future policies or how lessons from past engagement will be implemented.
Read full response →
Department for Business and Trade
11 Recommendation First Report - Post-pandemic economic g… Not Addressed

In addition to co-production with the Devolved Administrations, the Plan for Growth should be developed...

In addition to co-production with the Devolved Administrations, the Plan for Growth should be developed with regional and local leaders in England with a focus on promoting local engagement with industrial policy, and not merely a strategy document for consumption in Whitehall. Read more

Government response AI summary
The government's response clarifies departmental responsibilities, but it does not address the recommendation to develop the Plan for Growth in co-production with regional and local leaders in England.
Read full response →
Department for Business and Trade
13 Conclusion First Report - Post-pandemic economic g… Not Addressed

When launched in 2017, the fundamental purpose of the Industrial Strategy was to address poor...

When launched in 2017, the fundamental purpose of the Industrial Strategy was to address poor productivity in the UK, particularly outside of the South East. However, improved productivity was not itself a Grand Challenge or mission of the strategy. This may have contributed to a sense of the Strategy’s complexity … Read more

Government response AI summary
The government describes the core programmes of the 2017 Industrial Strategy and states that ongoing aspects will continue or evolve as part of the Plan for Growth, but does not address the conclusion regarding the strategy's perceived lack of clear purpose.
Read full response →
Department for Business and Trade
14 Conclusion First Report - Post-pandemic economic g… Not Addressed

We are concerned that the Plan for Growth lacks mission-based structures (beyond references to net...

We are concerned that the Plan for Growth lacks mission-based structures (beyond references to net zero and levelling up) or formal mechanisms for strategic sectoral engagement and support. The reduced emphasis on these elements lessens the formal complexity of the Plan for Growth compared to the Industrial Strategy, but risks … Read more

Government response AI summary
The government describes the ongoing delivery of programs from the 2017 Industrial Strategy but does not address the committee's concern about the lack of specific mission-based structures or formal sectoral engagement mechanisms in the new Plan for Growth.
Read full response →
Department for Business and Trade
17 Recommendation First Report - Post-pandemic economic g… Not Addressed

While some businesses in some sectors were aware of the strategy’s purpose and objectives, for...

While some businesses in some sectors were aware of the strategy’s purpose and objectives, for many it was distant, did not provide clear direction nor influence decision making. We would like Government to ensure that future industrial policy is easily understood at the grassroots of British industry and translatable to … Read more

Government response AI summary
The government describes the previous Industrial Strategy and states that ongoing aspects will continue, with some policies evolving as part of the Plan for Growth, but does not commit to specific actions to ensure future policy is easily understood at the grassroots.
Read full response →
Department for Business and Trade
20 Conclusion First Report - Post-pandemic economic g… Not Addressed

Each sector deal is different, some are new whilst some established in 2017 built on...

Each sector deal is different, some are new whilst some established in 2017 built on cross-sector working already in place. There is value in maintaining the sectoral approach—but clear measures of success and failure are required.

Government response AI summary
The government acknowledges the importance of working collaboratively with stakeholders, but does not address the conclusion about maintaining the sectoral approach or the specific need for clear measures of success and failure for sector deals.
Read full response →
Department for Business and Trade
26 Recommendation First Report - Post-pandemic economic g… Not Addressed

We are concerned that so few local strategies were agreed and published, and at evidence...

We are concerned that so few local strategies were agreed and published, and at evidence which calls into question the varying ability of local institutional structures to take forward industrial policymaking. Regardless of whether the specific Local Industrial Strategy model is continued, Government should consider the lessons that can be … Read more

Government response AI summary
The government response consists only of a report title and page number, providing no substantive engagement with the recommendation.
Read full response →
Department for Business and Trade
29 Conclusion First Report - Post-pandemic economic g… Not Addressed

The Government’s recognition of the value of the insights generated through the process of working...

The Government’s recognition of the value of the insights generated through the process of working with local areas to design, and in some cases agree, Local Industrial Strategies is welcome. However, it does not address the fundamental uncertainty regarding the future status of local strategies which are already published, and … Read more

Government response AI summary
The government gives a generic response stating its agreement that policies should support the whole economy and all parts of the UK, which does not address the committee's specific concern about the uncertain future status of local industrial strategies.
Read full response →
Department for Business and Trade
31 Recommendation First Report - Post-pandemic economic g… Not Addressed

The Government should clarify whether a new structure will replace Local Industrial Strategies, or what...

The Government should clarify whether a new structure will replace Local Industrial Strategies, or what form local growth plans will take in future. This would help to ensure a strategic approach can be taken to distributing funding through levelling up and community investment programmes including the Shared Prosperity Fund. Local … Read more

Government response AI summary
The government describes its general approach to sectoral policy, balancing horizontal and vertical interventions within the Plan for Growth, but does not clarify the future structure or form of local growth plans or their role as a focal point.
Read full response →
Department for Business and Trade
32 Conclusion First Report - Post-pandemic economic g… Not Addressed

The paucity of agreed Local Industrial Strategies ultimately limited the contribution of local insights and...

The paucity of agreed Local Industrial Strategies ultimately limited the contribution of local insights and intelligence into national industrial policy. However, co-creation of industrial policy at local and national level is the right approach and was a strength of the Industrial Strategy. We share the Industrial Strategy Council’s concern that … Read more

Government response AI summary
The government explains its balanced approach to horizontal and vertical sectoral policies under the Plan for Growth, but does not address the concern regarding the absence of mechanisms for co-creation and local insights to inform national policy.
Read full response →
Department for Business and Trade
39 Conclusion First Report - Post-pandemic economic g… Not Addressed

The Advanced Research and Invention Agency (ARIA) could provide a mechanism to contract for innovation...

The Advanced Research and Invention Agency (ARIA) could provide a mechanism to contract for innovation by driving public-private collaboration and encouraging 54 Post-pandemic economic growth: Industrial policy in the UK competition between commercial organisations to secure alternative sources of investment for growth. We believe that an agency which can take … Read more

Government response AI summary
The government's response details existing COVID-19 support packages but does not address the committee's observation regarding the Advanced Research and Invention Agency's potential to drive innovation and public-private collaboration.
Read full response →
Department for Business and Trade
40 Conclusion First Report - Post-pandemic economic g… Not Addressed

We note the conclusion of the House of Commons Science and Technology Committee that ARIA...

We note the conclusion of the House of Commons Science and Technology Committee that ARIA is a “brand in search of a product” and share concerns that its function remains uncertain. ARIA’s remit and objectives are very broad and we are concerned that its potential should not be diluted by … Read more

Government response AI summary
The government's response discusses support packages for businesses during Covid-19, which is entirely unrelated to the committee's concerns about the focus and function of ARIA.
Read full response →
Department for Business and Trade
43 Recommendation First Report - Post-pandemic economic g… Not Addressed

British business should be provided with a clear picture of the landscape in which it...

British business should be provided with a clear picture of the landscape in which it will operate in the post-Brexit and post-Covid-19 era. We recommend that the Government publish an overview of the scale and nature of its future relationship with industry to clarify the mechanisms it will use for … Read more

Government response AI summary
The government generically recognises sectors undergoing rapid change but does not commit to publishing an overview of its relationship with industry, principles for SMEs, or Treasury plans for modernising procurement rules.
Read full response →
Department for Business and Trade
44 Recommendation First Report - Post-pandemic economic g… Not Addressed

To provide clear direction the Government should present to the House an updated industrial policy...

To provide clear direction the Government should present to the House an updated industrial policy statement which sets out the Government’s strategic assessment of industrial policy in the UK. The Government should provide:(Paragraph 180) • Confirmation of who is leading industrial policy in the UK—is it the Prime Minister as … Read more

Government response AI summary
The government's response provides a generic statement about sectors undergoing rapid change and does not address the comprehensive recommendation for an updated industrial policy statement or specific commitments.
Read full response →
Department for Business and Trade

Oral evidence sessions

5 sessions
Date Witnesses
2 Mar 2021 Andy Haldane · Industrial Strategy Council, Charlie Mayfield · Industrial Strategy Council, Dame Kate Barker CBE · Industrial Strategy Council, Professor Dame Nancy Rothwell · Industrial Strategy Council View ↗
26 Jan 2021 Amanda Solloway · Department for Business, Energy and Industrial Strategy, Dame Ottoline Leyser · UK Research and Innovation, Dick Elsy CBE · High Value Manufacturing Catapult, Dr David Connell · Centre for Business Research, University of Cambridge, Dr Jeremy Silver · Digital Catapult, Jessica Skilbeck · Department for Business, Energy and Industrial Strategy, Mike Biddle · Innovate UK, Professor Chris Day · University of Newcastle View ↗
15 Dec 2020 Catherine Lewis La Torre · British Business Bank, Irene Graham · ScaleUp Institute, James Wise · Balderton Capital View ↗
8 Oct 2020 Anthony Walker · Tech UK, Gareth Stace · UK Steel, Guy Newey · Energy Systems Catapult, Mike Hawes · Society of Motor Manufacturers and Traders, Nick Owen · Professional and Business Services Council, Paul Everitt · ADS Group, Paul Everitt · ADS, Peter Ellingworth · Association of British HealthTech Industries, Stephen Phipson CBE · Make UK View ↗
24 Sep 2020 Dr Anna Valero · LSE, Kate Bell · Trades Union Congress (TUC), Rain Newton-Smith · Confederation of British Industry, Rain Newton-Smith · Confederation of British Industry (CBI), Rt Hon Greg Clark · House of Commons Science and Technology Committee View ↗

Who gave evidence

29 witnesses
WitnessOrganisationSessions
Amanda Solloway · Minister for Science, Research and Innovation Department for Business, Energy and Industrial Strategy 1
Andy Haldane · Chair Industrial Strategy Council 1
Anthony Walker · Deputy Chief Executive Officer Tech UK 1
Catherine Lewis La Torre · Chief Executive Officer British Business Bank 1
Charlie Mayfield · Member Industrial Strategy Council 1
Dame Kate Barker CBE · Member Industrial Strategy Council 1
Dame Ottoline Leyser · Chief Executive Officer UK Research and Innovation 1
Dick Elsy CBE · Chief Executive Officer High Value Manufacturing Catapult 1
Dr Anna Valero · Distinguished Policy Fellow and Growth Programme … LSE 1
Dr David Connell · Senior Research Fellow Centre for Business Research, University of Cambridge 1
Dr Jeremy Silver · Chief Executive Officer Digital Catapult 1
Gareth Stace · Director General UK Steel 1
Guy Newey · Chief Executive Officer Energy Systems Catapult 1
Irene Graham · Chief Executive Officer ScaleUp Institute 1
James Wise · Partner Balderton Capital 1
Jessica Skilbeck · Director of Industrial Strategy Department for Business, Energy and Industrial Strategy 1
Kate Bell · Head of Rights, International, Social and Economi… Trades Union Congress (TUC) 1
Mike Biddle · Programme Director, Industrial Strategy Challenge… Innovate UK 1
Mike Hawes · Chief Executive Society of Motor Manufacturers and Traders 1
Nick Owen · Co-Chair Professional and Business Services Council 1
Paul Everitt · Chief Executive ADS Group 1
Paul Everitt · Chief Executive ADS 1
Peter Ellingworth · Chief Executive Officer Association of British HealthTech Industries 1
Professor Chris Day · Vice-Chancellor University of Newcastle 1
Professor Dame Nancy Rothwell · Member Industrial Strategy Council 1
Rain Newton-Smith · Chief Economist Confederation of British Industry 1
Rain Newton-Smith · Chief Executive Confederation of British Industry (CBI) 1
Rt Hon Greg Clark · Chair House of Commons Science and Technology Committee 1
Stephen Phipson CBE · Chief Executive Officer Make UK 1

Correspondence

2 letters
DateDirectionTitle
11 Mar 2021 To cttee Letter from the Secretary of State to the Chair on the Industrial Strategy
4 Mar 2021 To cttee Letter from the Chair to the Secretary of State regarding the future of the Ind…

Meetings & visits

3 items
DateTypeDetail
14 Jan 2021 Informal meeting Industrial Strategy Roundtable · Virtual Meeting
10 Dec 2020 Informal meeting Industry Roundtable · Virtual Meeting
19 Nov 2020 Informal meeting Industry Roundtable · Virtual meeting