Source · Select Committees · Business and Trade Committee
Recommendation 27
27
Acknowledged
Paragraph: 106
The Local Industrial Strategy model faced key limitations, including: a lack of associated long-term funding...
Conclusion
The Local Industrial Strategy model faced key limitations, including: a lack of associated long-term funding that could help unlock local investments; variable local institutional capacity to develop, implement and evaluate local strategies; limited priority and capacity within central Government to support the development of 52 Post-pandemic economic growth: Industrial policy in the UK local strategies; and a lack of clarity on how far the national vision could be adapted to local circumstances, or by what criteria the local strategies’ success could be judged. Many of these limitations are related to the powers, funding and support available to local areas to effectively develop and implement strategic local economic policies, appropriately informed by national priorities.
Government response summary AI-generated
The government agrees its policies should support the whole economy and deliver for all parts of the UK, but does not address the specific limitations identified with the Local Industrial Strategy model.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
106
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
The Government has worked with all places across England, through the Cities and Local Growth Unit (MHCLG/BEIS) to develop Local Industrial Strategies (LIS). However, in the four years since the Industrial Strategy was produced, the UK’s economic and business environment has changed. Local places are best placed to set their own economic strategies to drive forward growth in their respective local economies. As part of the transition from the 2017 Industrial Strategy to the Plan for Growth, the Government is encouraging places to consider key sectors, assets and clusters they want to support to foster their long-term growth ambitions. This will build on the work undertaken as part of the LIS. The Government will continue to consider existing LISs and recovery plans when making decisions about how the Government supports areas. This Government is also committed to ensuring that local areas are supported in building their skills capabilities. The Skills for Jobs White Paper outlines the Government’s approach to local skills provision, including the pilot of employer-led Local Skills Improvement Plans in England, which will inform the national rollout of the programme, and ensure that plans lead to skills training that is more responsive to local skills needs. As mentioned in our response to recommendations 10, 11 and 33, we will also continue to work with the Devolved Administrations, as well as regional and local leaders where appropriate, at policy level to drive progress towards shared objectives and deliver the ambitions of the Plan for Growth. The Government acknowledges the Committee’s support for Local Enterprise Partnerships (LEPs). The Government wants to review the role LEPs and local businesses play in driving local growth and supporting the local economy, and make sure they are fit for purpose as we build back better. The Government has set out its commitment to reviewing the future of LEPs as part of the upcoming Levelling Up White Paper.
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