Recommendation 18

HM Government · verbatim extract Accepted

The Government’s approach to sectoral policy draws on the academic consensus that identifies economy-wide horizontal interventions – on regulation, research, skills, infrastructure, business environment and innovation – as the bedrock of effective economic strategy, allowing the market to find and grow the highest potential industries. However, there is further evidence that highlights the benefits of sector-focused interventions to complement these cross-economy wide tailored horizontal interventions. The Plan for Growth adopts this balance of both horizontal and vertical policies. The Government’s recently published Innovation Strategy sets out a renewed approach to mission-based innovation. Existing Sector Deals will continue, including the North Sea Transition Deal, which was published in March 2021. The Plan for Growth committed to set out visions for high-growth sectors and technologies where the country is well placed to develop a globally competitive advantage. The first of these sector visions in Life Sciences, has already been published with others to be set out by the relevant departments in the coming months. In developing these visions, the Government will consider its role in supporting high-growth sectors, as well as how these sectors can also support wider Government objectives, for example levelling up or enabling our transition to Net Zero. The Government remains committed to building long-term strategic partnerships with businesses across all sectors. The Plan for Growth committed to set out a vision for high-growth sectors and technologies where the country is well placed to develop a globally competitive advantage. The details of subsequent sector visions will be set out by the relevant departments in the coming months. In developing these visions, the Government will consider its role in supporting high-growth sectors where the country is well placed to develop a globally competitive advantage. The Government will also consider how these sectors can also support wider Government objectives, for example, levelling up or enabling our transition to Net Zero. The Sector Deals Programme has seen the publication of 12 Sector Deals across 11 sectors between 2017 and 2021, and is now closed to new deals. The published Sector Deals are outcome focused, time limited and ongoing in varying states of delivery. Existing Sector Deals will continue, most recently the North Sea Transition Deal, which was published in March.