Source · Select Committees · Business and Trade Committee
Recommendation 4
4
Accepted
Establish robust framework with clear targets and metrics for industrial strategy and sector plans
Recommendation
We recognise that ‘what gets measured gets managed’. The forthcoming industrial strategy and sector plans must set out how their economic contribution to the Growth Mission and the Government’s strategic objectives will be measured. To track the progress of the industrial strategy, we recommend the Government sets a robust framework, with clear targets for the remainder of this Parliament and for the 10-year span of the industrial strategy, along with clear metrics. The framework should allow 70 Parliament and the Industrial Strategy Advisory Council to assess how the industrial strategy is contributing to the Growth Mission as well as the strategy’s contribution to inclusive growth, net zero and the UK’s economic security and resilience. Key targets must be set for each of these objectives and enshrined in public spending agreements between the Treasury and individual departments to ensure that public spending across government is supporting the Industrial Strategy. The Industrial Strategy Advisory Council should conduct an annual progress review against these targets, and this review should be reported to Parliament. This framework should be reflected in plans for each of the growth-driving sectors, while also allowing for sector-specific metrics and targets. (Recommendation, Paragraph 31) Growth-driving sectors and grand challenges
Government Response Summary
The government agrees on the need for clear measures and confirms the Industrial Strategy already includes a robust Monitoring and Evaluation framework overseen by the Industrial Strategy Advisory Council, which will report annually. Six economic indicator metrics have been set, and Sector Plans include varying targets to track progress.
Government Response
Accepted
HM Government
Accepted
2.1. The Government agrees that there must be clear measures in place to assess progress on delivering the Industrial Strategy. The Strategy set out a robust approach to Monitoring and Evaluation (M&E), which is an essential component of any successful policy programme. M&E will be overseen by the Industrial Strategy Advisory Council, this will also ensure that the Government can adapt the Industrial Strategy in response to policies that are not having their desired effect and/or economic developments. 2.2. The Council will report annually on its work, as well as produce bespoke reports on specific topics of interest. 2.3. In the Industrial Strategy, the Government has also set out six economic indicator metrics These are: business investment, gross value added, productivity growth, trade exports, labour market outcomes and the number of large ‘home-grown’ firms. The Government and Council will also use operational data on the delivery and impact of policies, to monitor progress in delivering individual Industrial Strategy policies. 2.4. Sector Plans also include targets, as set out above, which vary to account for the different objectives and characteristics of their sector and existing government ambitions. These will be tracked by the lead department for each plan as part of their M&E programme which will subsequently feed into the overall M&E programme.