Industrial Strategy: Where are we Heading?

With minimal fanfare, the Government has published a green paper for its much hyped industrial strategy.

So what opportunities and threats does this present:

• Invest 2035: the UK’s modern industrial strategy

This 10 year plan is aimed at stimulating growth and economic security, creating quality well paid jobs, and transitioning the UK to Net Zero.

Those prepared to put aside enough time to read these 66 pages, will not discover any real surprises, as much of it received publicity during the recent election campaign. Recognising where we already have a competitive advantage (research institutions, innovative firms, global trading nation, a recognised set of regulatory and competition institutions, the pro-entrepreneurial environment and a highly skilled workforce) the Government will target sectors where it believes the most opportunities exist:

• • Advanced Manufacturing,
  • Clean Energy Industries,
  • Creative Industries,
  • Defence,
  • Digital and Technologies,
  • Financial Services,
  • Life Sciences,
  • Professional and Business Services.

Intervention will be in the form of new policy on:

• • People and skills
    • Transform Job centres into a national jobs and careers service that will help employers find the talent they need,
    • The new Growth and Skills Levy, which replaces the existing Apprenticeships Levy, will enable employers to access a broader range of high-quality training offers,
    • A detailed plan to support getting the economically inactive back into work,
    • Making employment rights fit for a modern economy.

• • Innovation
    • Using public sector data as a driver of growth, including the creation of the National Data Library.

• • Energy and infrastructure
    • Speeding up the planning process,
    • Making available £21.7 billion of funding over 25 years to make the UK an early leader in carbon capture and hydrogen,
    • Established Great British Energy, which will own and invest in clean energy generation in partnership with the private sector and the Crown Estate,
    • The National Energy Systems Operator (NESO) and network companies are already working to further accelerate more electricity grid connections.

• • Regulatory environment
    • On company law, the Government is making reforms, including immediate changes to non-financial reporting regulations.

• • Crowding in investment
    • The British Business Bank (the UK government’s economic development bank) offers a range of debt and equity products through over 200 delivery partners.

• • International partnerships and trade
    • Alongside the Budget the Government will publish a Corporate Tax Roadmap setting out its approach to creating Corporation Tax stability for the coming years,
    • Opening up £385bn of annual Government procurement contracts to new entrants such as small businesses and social enterprises,
    • Negotiating new international trade agreements, such as the UK-Germany Treaty, and delivering an agenda of strengthened cooperation with the EU.

As with all green papers, feedback is invited. The final Industrial Strategy, alongside Sector Plans for the growth-driving sectors, will be published in Spring 2025 along with the multi-year Spending Review.

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No matter what the final Industrial Strategy brings, always remember that your local Whitings LLP team are here to help you.