Source · Select Committees · Business and Trade Committee
Recommendation 14
14
Accepted
We note that the Chancellor referred to an ‘industrial strategy’ in his Budget statement, but...
Recommendation
We note that the Chancellor referred to an ‘industrial strategy’ in his Budget statement, but that no industrial strategy was published. Given the global context referred to by our witnesses, and the very real threat of UK investments being tempted into the European or American markets, we call on the Government to make a statement to clarify whether the Government has an industrial strategy or not. If it does, we call on Ministers to engage with business, investors, and workers’ representatives as soon as possible in order to publish any such strategy for the purposes of scrutiny and private sector clarity. (Paragraph 50) 18 UK plc
Government Response Summary
The government identifies five key growth sectors, outlines support measures in the Spring Budget (R&D tax credits, carbon capture investment, investment zones), mentions regulatory measures to reduce red tape, and highlights ongoing dialogue with businesses.
Government Response
Accepted
HM Government
Accepted
Delivering economic growth in key sectors is a priority for the Government. The Chancellor has identified five key growth sectors for the UK: Digital Technology, Green Industries, Life Sciences, Advanced Manufacturing and Creative Industries. The Spring Budget included a number of announcements in support of these policies including: a) a £500 million per year package of support for 20,000 research and development (R&D) intensive businesses through changes to R&D tax credits. b) £20 billion of investment over 20 years in carbon capture and storage was announced, alongside a reclassification of nuclear power as carbon neutral. c) 12 new investment zones to catalyse growth clusters across the UK. Each cluster will drive growth in key future sectors and bring investment to the local area. Each English Investment Zone will have access to interventions worth £80 million over five years, including tax reliefs and grant funding. Last month, DBT announced regulatory measures that will reduce burdensome red tape and tailor rules to suit the UK economy, potentially saving employers around £1 billion yearly. This includes reduce time-consuming and disproportionate reporting requirements for specific elements of the Working Time Regulations, while retaining the 48-hour week requirement and upholding our world leading employment standards. DBT is in constant dialogue with business, representing its voice across Whitehall, and we will continue to do that.