Source · Select Committees · Business and Trade Committee
7th Report - Industrial Strategy
Business and Trade Committee
HC 727
Published 6 June 2025
Recommendations
8
Accepted in Part
Develop trade strategy with industrial strategy and publish plan to remove export barriers.
Recommendation
We recommend that the Government develops its forthcoming trade strategy with the industrial strategy and makes sure that it enables the 8 growth-driving sectors to grow exports, including in the food and drink sector. We also recommend that the Government …
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Government Response Summary
The government states the Trade and Industrial Strategies were developed together to support growth sectors with direct export support, including new legislation for UK Export Finance and a "Ricardo Fund" for removing trade barriers. However, it does not commit to publishing a separate 10-year plan for tackling non-tariff barriers.
Department for Business and Trade
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12
Accepted in Part
Provide multi-year framework contracts for SMEs; set direct public procurement spend target.
Recommendation
To support SMEs to innovate and to continue to grow, we recommend that multi-year framework contracts are available for SMEs in the sectors in which the state is the biggest customer, such as defence and life sciences. We also recommend …
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Government Response Summary
The government states that the Procurement Act (2023) requires central government departments to set 3-year targets for direct spend with SMEs from April 2025, and MOD has committed to increasing defence spending with SMEs by £2.5 billion by May 2028. However, the response does not specifically address the recommendation for multi-year framework contracts for SMEs.
Department for Business and Trade
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15
Accepted in Part
Consolidate public finance institutions into a single body to simplify business support.
Recommendation
We recommend, in line with the Harrington review, that the Government should consolidate the public finance institutions, especially the National Wealth Fund and the British Business Bank, preferably into a single body to simplify the system for business and investors …
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Government Response Summary
The government agrees on the importance of public finance but does not commit to consolidating public finance institutions into a single body. Instead, it commits to strengthening coordination and clarity through a new UK Strategic Public Investment Forum.
Department for Business and Trade
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24
Accepted in Part
Commission and publish analysis of skills gaps across eight growth-driving sectors.
Recommendation
We recommend that: • Skills England commission and publish an analysis of the skills gaps across the eight growth-driving sectors and report to Parliament within six months. This should include an estimate of the current and future skills gaps across …
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Government Response Summary
The government refers to Skills England's ongoing assessments of skills needs, partially addressing the recommendation for analysis. It outlines how the English Devolution White Paper will strengthen local leadership in skills and states a commitment to exploring further devolution, but does not address the recommendations to transfer skills policy responsibility to the Department for Business and Trade or create a joint ministerial role for the Minister for Skills.
Department for Business and Trade
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26
Accepted in Part
Review UK public research and innovation institutions for industrial strategy alignment and commercialisation.
Recommendation
We recommend that the Department for Business & Trade and Department for Science, Innovation and Technology now conduct a review of the UK’s public research and innovation institutions to ensure they are in alignment with the industrial strategy and that …
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Government Response Summary
The government acknowledges the need for alignment and leadership in R&D, stating it will give UKRI new objectives to enable innovation and commercialisation, and ensure the Catapult Network is focused on industrial strategy priorities. However, it does not commit to conducting the recommended comprehensive review of institutions or examining lessons from other countries.
Department for Business and Trade
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Conclusions (1)
14
Conclusion
Accepted in Part
The UK has a complex system of public finance institutions. We accept that different businesses, depending on where they are on their journey, will need different types of financial support. However, our view is that there would be merit in providing a single front door for companies looking for government …
Government Response Summary
The government agrees on the importance of public finance and commits to strengthening coordination across public finance institutions via a new UK Strategic Public Investment Forum. This Forum will bring together key bodies to improve clarity for businesses and investors and facilitate investment in Industrial Strategy sectors.