Recommendations & Conclusions
32 items
1
Recommendation
7th Report - Industrial Strategy
Accepted
We welcome the Government’s proposals to bring forward a modern, 10-year industrial strategy that provides businesses and investors with certainty, stability and a solid foundation upon which to invest and grow. A more active partnership between Government, business, trade unions and local leaders is needed to address the stubborn economic …
Government response. The government states it published the modern Industrial Strategy in June 2025, outlining a 10-year plan to back eight high-potential sectors and frontier industries, with specific targets for business investment and growth across various sectors.
Department for Business and Trade
2
Conclusion
7th Report - Industrial Strategy
Acknowledged
We welcome the Government’s plans to bring forward an industrial strategy as a central pillar of its Growth Mission. The direction of growth matters, so we are pleased that the Government intends to use the industrial strategy to help the economy grow in a way that is inclusive, resilient and …
Government response. The government details how its Industrial Strategy Green Paper identified eight growth-driving sectors and frontier industries based on multiple indicators, including their alignment with sustainable, inclusive, and secure growth objectives such as net zero and regional growth.
Department for Business and Trade
3
Recommendation
7th Report - Industrial Strategy
Accepted
The industrial strategy must clarify how the Government plans to balance any tensions between maximising the headline rate of growth, supporting new sectors and existing jobs in industry, and achieving its net zero, economic security and regional growth objectives. (Recommendation, Paragraph 30)
Government response. The government accepts the recommendation by clarifying that the Industrial Strategy balances tensions by selecting priority sectors and frontier industries based on a multi-indicator assessment that ensures alignment with growth, net zero, economic security, and regional growth objectives.
Department for Business and Trade
4
Recommendation
7th Report - Industrial Strategy
Accepted
We recognise that ‘what gets measured gets managed’. The forthcoming industrial strategy and sector plans must set out how their economic contribution to the Growth Mission and the Government’s strategic objectives will be measured. To track the progress of the industrial strategy, we recommend the Government sets a robust framework, …
Government response. The government agrees on the need for clear measures and confirms the Industrial Strategy already includes a robust Monitoring and Evaluation framework overseen by the Industrial Strategy Advisory Council, which will report annually. Six economic indicator metrics have been set, …
Department for Business and Trade
5
Recommendation
7th Report - Industrial Strategy
Accepted
We recognise that the UK needs to prioritise and play to its strengths if it is going to move the dial on growth. We support the Government’s decision to focus the industrial strategy on sectors of the economy where the UK has a comparative advantage, or the ability to build …
Government response. The government accepts the recommendation by articulating a vision for the industrial strategy to help the UK seize opportunities from global societal challenges, specifically mentioning the clean energy transition, tech revolution, AI, and new geopolitics.
Department for Business and Trade
6
Recommendation
7th Report - Industrial Strategy
Acknowledged
We recommend that the Industrial Strategy Advisory Council works quickly to specify some selective grand challenges designed to galvanise whole- of-government efforts to boost the priority sectors set out in the Industrial Strategy. The challenges should be designed in a way to help transform public-private collaboration across a larger part …
Government response. The government outlines the role of the Industrial Strategy Advisory Council in providing advice, monitoring, and supporting workforce strategies, stating it will seek the Council's advice on industrial strategy delivery through future commissions. However, it does not commit the Council …
Department for Business and Trade
7
Recommendation
7th Report - Industrial Strategy
Accepted
In a rapidly developing and uncertain global trade environment and with an ongoing pipeline of trade negotiations, it is crucial that the industrial strategy and trade strategy are closely aligned. Having chosen eight growth-driving sectors as the focus of the industrial strategy, the Government must now ensure that these sectors …
Government response. The government states the Trade and Industrial Strategies were developed together and will provide direct support to businesses, including through information, commercial diplomacy, tailored export finance, international marketing, new legislation to increase UK Export Finance's portfolio, and a new "Ricardo …
Department for Business and Trade
8
Recommendation
7th Report - Industrial Strategy
Accepted in Part
We recommend that the Government develops its forthcoming trade strategy with the industrial strategy and makes sure that it enables the 8 growth-driving sectors to grow exports, including in the food and drink sector. We also recommend that the Government publishes a 71 10-year plan for working to take down …
Government response. The government states the Trade and Industrial Strategies were developed together to support growth sectors with direct export support, including new legislation for UK Export Finance and a "Ricardo Fund" for removing trade barriers. However, it does not commit to …
Department for Business and Trade
9
Recommendation
7th Report - Industrial Strategy
Accepted
We recommend that Department for Business and Trade teams based abroad are given a clear framework, which they report to Parliament, for how they can support export opportunities for each of the growth driving sectors, in the most important UK markets accounting for 80% of UK export growth. This framework …
Government response. The government commits to refocusing the overseas network on Industrial Strategy growth sectors, directing officials, prioritising resources, developing promotional campaigns, and empowering Ambassadors and Trade Commissioners to develop new strategic plans for supporting these sectors in major markets.
Department for Business and Trade
10
Recommendation
7th Report - Industrial Strategy
Deferred
Public procurement if used effectively is amongst the most important tools to drive the industrial strategy. However, for this to be the case, the Government needs to ensure that procurement policy joined at the hip with the industrial strategy and wider growth mission. The Government needs to procure in ways …
Government response. The government agrees on the importance of public procurement for economic growth and states the Industrial Strategy details current reforms. Further details on their approach to procurement will be set out following a consultation launched in June 2025.
Department for Business and Trade
11
Recommendation
7th Report - Industrial Strategy
Deferred
We recommend that alongside the industrial strategy, the Government publishes a clear estimate of the number of jobs in the eight growth driving sectors that are supported by public procurement as well as the contribution of procurement spend to the economic growth of the sectors. We recommend that the Government …
Government response. The government agrees public procurement is important but defers further detail on its approach until after a consultation launched in June 2025. It does not commit to publishing an estimate of jobs supported by procurement or to the Chief Commercial …
Department for Business and Trade
12
Recommendation
7th Report - Industrial Strategy
Accepted in Part
To support SMEs to innovate and to continue to grow, we recommend that multi-year framework contracts are available for SMEs in the sectors in which the state is the biggest customer, such as defence and life sciences. We also recommend that the Government set a target for how much of …
Government response. The government states that the Procurement Act (2023) requires central government departments to set 3-year targets for direct spend with SMEs from April 2025, and MOD has committed to increasing defence spending with SMEs by £2.5 billion by May 2028. …
Department for Business and Trade
13
Recommendation
7th Report - Industrial Strategy
Acknowledged
To ensure that there is sufficient long term demand signalling, we recommend that Government Departments increase the proportion of public contract opportunities in their pipeline that are five to ten years out. . We also recommend that the Government update its public procurement strategy to include a comply-or-explain process for …
Government response. The government acknowledges the importance of long-term signalling and mentions the Procurement Act (2023) and an existing MOD budget target for novel technologies. It is consulting on options related to supporting British industry in procurement, but does not commit to …
Department for Business and Trade
14
Conclusion
7th Report - Industrial Strategy
Accepted in Part
The UK has a complex system of public finance institutions. We accept that different businesses, depending on where they are on their journey, will need different types of financial support. However, our view is that there would be merit in providing a single front door for companies looking for government …
Government response. The government agrees on the importance of public finance and commits to strengthening coordination across public finance institutions via a new UK Strategic Public Investment Forum. This Forum will bring together key bodies to improve clarity for businesses and investors …
Department for Business and Trade
15
Recommendation
7th Report - Industrial Strategy
Accepted in Part
We recommend, in line with the Harrington review, that the Government should consolidate the public finance institutions, especially the National Wealth Fund and the British Business Bank, preferably into a single body to simplify the system for business and investors looking for government support, together with the reforms we set …
Government response. The government agrees on the importance of public finance but does not commit to consolidating public finance institutions into a single body. Instead, it commits to strengthening coordination and clarity through a new UK Strategic Public Investment Forum.
Department for Business and Trade
16
Conclusion
7th Report - Industrial Strategy
Accepted
The industrial strategy needs to provide ways to unlock finance that allows UK startups, spinouts and other firms to commercialise to scale-up and commercialise their innovations in the UK. Far too many promising companies are leaving for the US and other countries. (Conclusion, Paragraph 82)
Government response. The government accepts the conclusion and outlines specific measures to unlock finance, including increasing the British Business Bank's capacity and committing an additional £4 billion for IS8 investment, expanding the National Wealth Fund's mandate, and strengthening UK Export Finance's offer …
Department for Business and Trade
17
Recommendation
7th Report - Industrial Strategy
Accepted
The industrial strategy must set out measures that will be used to help firms access the funding they need to scale-up and commercialise in the UK. As an initial step, we recommend that the Government increase the amount of support the British Business Bank can provide to help firms scale-up. …
Government response. The government states its Industrial Strategy outlines measures to help firms access funding through Public Financial Institutions, including increasing the British Business Bank's total financial capacity to £25.6 billion and committing an additional £4 billion for investment in IS8 sectors.
Department for Business and Trade
18
Recommendation
7th Report - Industrial Strategy
Accepted
We welcome the Government’s plans to expand the Office for Investment. To help drive strategic investments across the country, we recommend that a reformed and expanded Office for Investment should be build a team to work with Mayoral Combined Authorities and newly created strategic authorities capable of building a ‘term-sheet …
Government response. The government has launched a new Strategic Investment Opportunities unit within the reformed Office for Investment. This unit will work with Mayoral Strategic Authorities to identify, shape, and deliver strategic investment opportunities, focusing on areas prioritised in the Industrial Strategy.
Department for Business and Trade
19
Conclusion
7th Report - Industrial Strategy
Acknowledged
The intensity of global competition between countries to attract internationally mobile investment reinforces the importance of ensuring that the Government uses the financial resources it has allocated carefully and effectively. Without a clear budget, Parliament will not be in a position to effectively hold the Government to account for the …
Government response. The government details billions in investments allocated to support the Industrial Strategy and wider Growth Mission, including £4 billion for the British Business Bank, £4.3 billion for Advanced Manufacturing, and substantial funding for transport, housing, nuclear energy, and R&D.
Department for Business and Trade
20
Recommendation
7th Report - Industrial Strategy
Accepted
We recommend that through the Spending Review the Government provides clarity about the sum of public expenditure that will be allocated to the industrial strategy and the wider Growth Mission over the remainder of this Parliament. (Recommendation, Paragraph 91) Pro-business environment
Government response. The government provides clarity on public expenditure, detailing billions in investments allocated to the Industrial Strategy and wider Growth Mission, including £4 billion for the British Business Bank, £4.3 billion for Advanced Manufacturing, and significant funding for transport, housing, nuclear …
Department for Business and Trade
21
Conclusion
7th Report - Industrial Strategy
Accepted
High electricity prices in the UK are deterring investment and hurting the ability of UK industries to compete internationally and decarbonise. (Conclusion, Paragraph 101)
Government response. The government details several measures to address high electricity prices, including increasing the Network Charging Compensation scheme uplift from 60% to 90% from 2026, introducing a new British Industrial Competitiveness Scheme from 2027 to reduce electricity costs, and reviewing the …
Department for Business and Trade
22
Recommendation
7th Report - Industrial Strategy
Accepted
We recommend that the industrial strategy must include measures that level the playing field with our international competitors on industrial energy prices. Priority should be given to leading sectors, and other foundational industries, in which high energy prices have the greatest impact on the ability of UK-based businesses to compete …
Government response. The government has accepted the recommendation, announcing an uplift of the Network Charging Compensation scheme from 60% to 90% from 2026 and a new British Industrial Competitiveness Scheme from 2027 to reduce electricity costs for energy-intensive industries.
Department for Business and Trade
23
Conclusion
7th Report - Industrial Strategy
Accepted
Skills shortages are holding back growth and deterring investment across large parts of the economy, including within the UK’s growth-driving sectors. The skills system is too fragmented and inflexible. The needs of employers must be at the centre of the UK’s approach to training. Local leaders are best placed to …
Government response. The government accepts the conclusion by outlining how Skills England will address skills needs through data-driven assessments and co-creation of training, and how the English Devolution White Paper strengthens the role of Mayors and Strategic Authorities in local skills planning …
Department for Business and Trade
24
Recommendation
7th Report - Industrial Strategy
Accepted in Part
We recommend that: • Skills England commission and publish an analysis of the skills gaps across the eight growth-driving sectors and report to Parliament within six months. This should include an estimate of the current and future skills gaps across these sectors over the course of the 10-year period of …
Government response. The government refers to Skills England's ongoing assessments of skills needs, partially addressing the recommendation for analysis. It outlines how the English Devolution White Paper will strengthen local leadership in skills and states a commitment to exploring further devolution, but …
Department for Business and Trade
25
Conclusion
7th Report - Industrial Strategy
Accepted
The UK has strengths in research, development and innovation (RDI) but the Government struggles to effectively support companies, including startups and scale-ups, to commercialise their innovations domestically. We have heard that the UK has a complicated landscape of institutions to support RDI and that this landscape needs to be reviewed. …
Government response. The government acknowledges the importance of aligning R&D with industrial strategy, stating it will give UKRI new objectives to ensure clear institutional leadership for innovation, commercialisation, and scale-up, and will ensure the Catapult Network focuses on industrial strategy priorities.
Department for Business and Trade
26
Recommendation
7th Report - Industrial Strategy
Accepted in Part
We recommend that the Department for Business & Trade and Department for Science, Innovation and Technology now conduct a review of the UK’s public research and innovation institutions to ensure they are in alignment with the industrial strategy and that there is clear institutional leadership of research and development for …
Government response. The government acknowledges the need for alignment and leadership in R&D, stating it will give UKRI new objectives to enable innovation and commercialisation, and ensure the Catapult Network is focused on industrial strategy priorities. However, it does not commit to …
Department for Business and Trade
27
Recommendation
7th Report - Industrial Strategy
Accepted
We welcome the further support the Government has provided for the Made Smarter programme this year. We recommend that the Government provide further support in the Spending Review to substantially scale-up the programme. (Recommendation, Paragraph 114) Governance, oversight and accountability
Government response. The government has committed to expanding the Made Smarter Adoption programme with £99 million from 2026 to support an additional 5,500 manufacturing businesses and will also expand the model to the Professional and Business Services sector.
Department for Business and Trade
28
Conclusion
7th Report - Industrial Strategy
Not Addressed
The regulatory landscape for businesses needs to be simplified. We welcome the Government’s commitments to regulate for growth, and attempts to offer clarity through the regulation action plan and regulatory innovation office. However, we agree with Lord Livermore that the Government should take this agenda further and we believe that …
Government response. The government stated that the Regulatory Innovation Office (RIO) will continue its role without changes to its department or scope, and mentioned ongoing efforts to implement over 30 regulatory changes to cut administrative costs by 25% by the end of …
Department for Business and Trade
29
Recommendation
7th Report - Industrial Strategy
Rejected
We recommend that the Regulatory Innovation Office should be expanded to act as a clearing house for regulatory conflicts and give businesses a place to report conflicting regulations. We recommend that this expanded Regulatory Innovation Office sits within the Cabinet Office and is resourced appropriately to carry out this expanded …
Government response. The government stated there are no current plans to change the department or scope of the Regulatory Innovation Office (RIO), directly rejecting the recommendation to expand its role, relocate it to the Cabinet Office, and enhance ministerial oversight.
Department for Business and Trade
30
Recommendation
7th Report - Industrial Strategy
Accepted
The Government has sent a positive message in their commitment to cross- departmental co-ordination, engagement with regional leadership, and announcement of an Industrial Strategy Council. However, if the industrial strategy is to be successful, this needs to be translated into concrete action when the strategy is published. (Conclusion, Paragraph 134)
Government response. The government commits to putting the Industrial Strategy Council on a statutory footing via an upcoming IS Bill, with clearly defined duties and functions, and ensuring continued engagement with Mayors.
Department for Business and Trade
31
Recommendation
7th Report - Industrial Strategy
Accepted
First, and as a priority, we recommend that the Government introduces legislation to put the Industrial Strategy Council on a statutory footing, alongside the publication of the industrial strategy. We also recommend that the Industrial Strategy Council meets with Combined Authority Mayors on a quarterly basis. (Recommendation, Paragraph 135)
Government response. The government agrees to put the Industrial Strategy Council on a statutory footing through an Industrial Strategy Bill, which will include defined duties, functions, and data access. They also stated the Council has met with Mayors and will continue to …
Department for Business and Trade
32
Recommendation
7th Report - Industrial Strategy
Rejected
Finally, it is crucial that the industrial strategy and the wider growth mission has clear support from the Prime Minister. As such we recommend that the Prime Minister chairs quarterly sessions of the Growth Mission Board and that progress on the industrial strategy is reviewed at each such meeting that …
Government response. The government rejects the recommendation for the Prime Minister to chair quarterly sessions of the Growth Mission Board, stating that the Chancellor chairs the Board, and the Prime Minister engages with the Growth Mission via other means.
Department for Business and Trade