Source · Select Committees · Business and Trade Committee
Recommendation 5
5
Paragraph: 39
Abolition of the Industrial Strategy Council suggests that the Government’s commitment to coordinated industrial policy...
Conclusion
Abolition of the Industrial Strategy Council suggests that the Government’s commitment to coordinated industrial policy that can withstand and benefit from independent scrutiny has waned. The Council’s abolition risks expanding the gap between Government and the industries that must deliver productivity improvements, economic growth and achieve the UK’s net zero target, as well as limiting the transparency of the Government’s industrial policy objectives and Post-pandemic economic growth: Industrial policy in the UK 49 progress.
Paragraph Reference:
39
Government Response
Acknowledged
HM Government
Acknowledged
6. The Government published its strategic objectives for the economy in Build Back Better: our plan for growth on 3 March 2021, alongside the Budget. It sets out how the Government will support economic growth through significant investment in infrastructure, skills and innovation to pursue growth that levels up every part of the UK, enables the transition to Net Zero, and supports the Government’s vision for a Global Britain: • High-quality infrastructure is crucial for economic growth, boosting productivity and competitiveness. The National Infrastructure Strategy sets out the Government’s plans to transform the UK’s infrastructure networks. The Government is addressing historic underinvestment in infrastructure by continuing plans set out at Spring Budget 2020 to spend over £600 billion on gross public sector investment over the following five years, delivering the highest sustained levels of public sector net investment as a share of GDP since the late 1970s. • The best way to improve people’s life chances is to give them the skills to succeed. As set out in our Skills for Jobs White paper and the Plan for Jobs, the Government is encouraging lifelong learning through the Lifetime Skills Guarantee, transforming apprenticeships with employer-led standards, and 4 Post-pandemic economic growth: Industrial policy in the UK: Government Response reforming post-16 technical education and training to support people to develop the skills needed to get good jobs and improve national productivity. • Innovation drives economic growth and creates jobs. The Government has a target of increasing public and private sector research and development (R&D) expenditure to 2.4% of GDP to support the UK being a science superpower with a world-class research and innovation system. The Government has also created the Advanced Research & Invention Agency (ARIA) to fund high-risk, high-reward research. BEIS recently published an Innovation Strategy, the Government’s long-term vision to put innovation at the heart of building back better. It aims to boost private sector investment in R&D across the whole of the UK and create the right conditions for all businesses to innovate so they have the confidence to do so.