Source · Select Committees · Business and Trade Committee
7th Report - Industrial Strategy
Business and Trade Committee
HC 727
Published 6 June 2025
Government response
4th Special Report - Industrial Strategy: Government Response · published 12 Sep 2025
Recommendations & Conclusions
2
Conclusion
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 …
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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.
Department for Business and Trade
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6
Recommendation
Acknowledged
Specify selective grand challenges to galvanise whole-of-government efforts to boost priority sectors
Recommendation
We recommend that the Industrial Strategy Advisory Council works quickly to specify some selective grand challenges designed to galvanise whole- of-government efforts to boost the priority sectors set out in the Industrial Strategy. The challenges should be designed in a …
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Government Response Summary
The government outlines the role of the Industrial Strategy Advisory Council in providing advice, monitoring, and supporting workforce strategies, stating it will seek the Council's advice on industrial strategy delivery through future commissions. However, it does not commit the Council to quickly specifying selective grand challenges as recommended.
Department for Business and Trade
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13
Recommendation
Acknowledged
Increase long-term public contract opportunities; update procurement strategy with comply-or-explain for UK products.
Recommendation
To ensure that there is sufficient long term demand signalling, we recommend that Government Departments increase the proportion of public contract opportunities in their pipeline that are five to ten years out. . We also recommend that the Government update …
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Government Response Summary
The government acknowledges the importance of long-term signalling and mentions the Procurement Act (2023) and an existing MOD budget target for novel technologies. It is consulting on options related to supporting British industry in procurement, but does not commit to increasing the proportion of 5-10 year public contracts across all departments or implementing a 'comply-or-explain' process.
Department for Business and Trade
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19
Conclusion
Acknowledged
Lack of clear budget hinders accountability for government's use of investment funds.
Conclusion
The intensity of global competition between countries to attract internationally mobile investment reinforces the importance of ensuring that the Government uses the financial resources it has allocated carefully and effectively. Without a clear budget, Parliament will not be in a …
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Government Response Summary
The government details billions in investments allocated to support the Industrial Strategy and wider Growth Mission, including £4 billion for the British Business Bank, £4.3 billion for Advanced Manufacturing, and substantial funding for transport, housing, nuclear energy, and R&D.
Department for Business and Trade
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