Source · Select Committees · Business and Trade Committee
Recommendation 2
2
Acknowledged
Government's industrial strategy aims for inclusive, resilient, and sustainable economic growth
Conclusion
We welcome the Government’s plans to bring forward an industrial strategy as a central pillar of its Growth Mission. The direction of growth matters, so we are pleased that the Government intends to use the industrial strategy to help the economy grow in a way that is inclusive, resilient and sustainable. (Conclusion, Paragraph 29)
Government Response Summary
The government details how its Industrial Strategy Green Paper identified eight growth-driving sectors and frontier industries based on multiple indicators, including their alignment with sustainable, inclusive, and secure growth objectives such as net zero and regional growth.
Government Response
Acknowledged
HM Government
Acknowledged
1.1. Strategies make choices. The Industrial Strategy Green Paper, published in October 2024, identified the Industrial Strategy eight growth driving sectors using a multi-indicator assessment of current and emerging UK sector strengths. The main indicators assessed were output growth, productivity growth and international position. IS-8 were chosen based on this analysis as the sectors that should increase overall investment. These sectors will create the right kind of growth; sustainable, inclusive and secure. The aim in selecting these sectors for the Strategy is to create a more dynamic and competitive landscape, where challenger firms can emerge and create high-quality jobs, and incumbents have to invest to compete. 1.2. Since the Invest 2035 publication, the department has undertaken a full assessment of frontier industries’ strengths within the Industrial Strategy eight growth driving sectors, as well as considered supporting foundational sectors. This included an assessment of how these industries align with the government’s objectives of sustainable, inclusive, and resilient growth. 1.3. The department also assessed the fronter industries where government intervention could have the greatest impact. This identified over 30 ‘frontier industries’ within the Industrial Strategy eight growth driving sectors as well as eight supporting foundational sectors and inputs which were critical to these frontier industries’ success. 1.4. The trade-off between growth and other objectives was handled by selecting frontier industries that were good for both growth and other objectives. Frontier industries needed to have good growth opportunities to be included but also needed to score well on one or more of the strategic objectives of net zero, regional growth, and economic security & resilience.