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The UK’s long-awaited industrial strategy began was pushed back at the end of June. This is to create an ambitious plan to reduce the country’s punishment of industrial energy costs as pressure is put on the ministers.
The strategy, originally scheduled to begin in the spring, has been postponed as the minister held last-minute negotiations with the Treasury on the division’s budget prior to Wednesday’s spending review.
“It all depends on spending reviews,” said one who is working on an industrial strategy that prioritizes eight “growth” sectors. “There are many square brackets in the text. Everyone could have predicted this would happen.”
Officials said the plan would begin in the final week of June, acknowledging that last-minute hugging over Whitehall budgets maintained it.
However, business secretary Jonathan Reynolds’ allies said they hope that the work is almost complete and that the strategy has a good slot in the “grid” of government announcements and that they hope to attract the maximum attention.
In a big month for Kiel’s economic policy prime minister, Prime Minister Rachel Reeves will announce the conclusion of her spending review (for the rest of the assembly) on June 11th.
A long-term infrastructure plan with the announcement of specific projects will be announced the following week. Industrial and individual trade strategies will begin weekly on June 23rd.
Industrial strategies include planning for advanced manufacturing, clean energy, creative industries, defense, digital and technology, financial services, life sciences, professional and business services.
Also, two major issues affecting the economy as a whole: high energy costs and lack of skills. Industry bosses want to invest heavily in both areas.
The Cross-Party Commons House Business Trade Committee on Friday urged the minister to “level the playing field” on energy costs with competitors.
Rachel Reeves told the audience at the CBI Lobby Group’s annual dinner on Thursday: “In particular, the way to make energy more affordable for businesses that use a lot of intensive energy compared to other countries around the world is not competitive.”
“That’s a question I know we need to answer in an industrial strategy in a few weeks,” the prime minister added.
The industry chief, explained in the government’s ideas, is worried that the minister may focus on hundreds of companies engaged in energy-intensive sectors such as steel and ceramics, and would like to help spread more widely to other companies.
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The committee also called for improved public procurement, new measures to help businesses access scale-up funding, and delegation of authority over post-16 technical education and training to elected mayors.
Labour MP and committee chair Liam Byrne said: “We are a world-leading science and technology hub, a fortress of world-leading science and technology, political stability, creative leaders played by rules, and one of the world’s largest financial centres.
However, he warned that such a position should be strengthened by “redesigning the British state for a new economic era.”
“We are pleased to announce that we are committed to making our products a part of our business,” said Stephen Phipson, CEO of the manufacturing lobby group Make UK.
The Ministry of Business said it was determined to create “the best conditions for the private sector to thrive” and that it had “extensive consultations with hundreds of companies” about its industrial strategy.
