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The author is the British Prime Minister.
The world has entered a new economic era. In many ways, it is more dangerous and is increasingly threat to our security. But it is also a world of great potential. Technological advances in life sciences, clean energy, artificial intelligence and more are deeply restructuring our economy.
It’s a great opportunity. We can use these great powers and use them to make our economy more fair and stronger. The race is definitely going on, but the UK is well set up to win. Our financial industry, universities and scientific institutions are all world leaders. Our legal system sets global standards. We have a legacy that has soaked into commerce and business. And with the recent trade contracts (hat tricks with India, the US and the EU), we have restored our identity as a global champion for free trade. Signals of rebellion, even if the world becomes more precarious, the UK is embarrassingly open for business. And the chaos of the year has been solid in the past.
But there’s a catch. For decades, successive governments have moved away from proper industrial strategies. Paradoxically, both were standing behind and interfering too much. When they realized that the industry was at the mercy of change, too often they were left to dodge for themselves. The government was not interested in providing a bridge to the future. But likewise, when new opportunities emerged, the UK often found itself too regulated to benefit themselves or too cautious to change courses. The result is overwhelming, weak, relying too many places, exposed to global volatility, and inadequate service to an economy that is too slow to take advantage of opportunities.
In an age of technological transformation, this is unbearable. Tired debates about large or small governments belong to the past. The only debate right now is whether you are agile enough to seize future opportunities or be left behind quickly. That is the purpose of my change plan. And that’s why I’m proud to launch a new industrial strategy for the country today. It is robust, strategic, and in the second long term, it addresses the challenges of our times. A 10-year plan to make the UK the best country to invest anywhere in the world. But there are also new relationships between business and government defined by partnerships.
Transactions are easy. Governments provide strategic certainty. And that means that the company is free to do what it is best and can generate wealth.
Of course, some say it means that the government is intervening in the economy. I don’t deny that. I think it’s our role to support UK businesses, invest in comparative advantages, and bet on pursuit of growth and productivity. However, this strategy is written by the company itself. This means understanding the importance of agility and constantly asking whether regulations are hindering the conditions for the UK to flourish.
The result is critical support for eight high-growth sectors: life sciences, advanced manufacturing, digital technology, defense, clean energy, finance, professional and business services, and creative industries. Each has a clear path to comparative benefits. Each creates employment and wealth. And each is supported by investments worth billions of pounds. £86 billion to expand innovation capabilities to research and development. More capital in the British Business Bank. A new generation of technology universities. Actions against industrial electricity prices to address key barriers to competitiveness.
Without a doubt, this will make a difference for thousands of businesses. But most importantly, it is part of the UK’s plan for growth. We asked a lot of business because we had to fix the foundation in our first year. But we have now decided to provide us with an incredible platform to build a more prosperous UK. These three trade deals helped exporters in the UK by opening new markets.
Today’s industrial strategy is based on all of this. This represents a new stage for the government. It’s a transition from fixing inherited issues to changing and updating that people may feel. It creates the wealth, employment and growth needed in all communities. A plan to support the creator of British wealth. And, working with them, we will regain the future of the UK.
