Recommendations & Conclusions
17 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
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
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
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
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
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
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
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
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