Business secretary Jonathan Reynolds and chancellor Rachel Reeves published a green paper on Monday (14 October), starting the process of delivering a new strategy aimed at “long-term growth… that is sustainable, resilient and distributed across the country.”
The strategy will focus on eight ‘key sectors’: advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.
An Industrial Strategy Advisory Council, chaired by Microsoft UK CEO Clare Barclay, will work with business, trade unions, devolved governments, academia and other stakeholders to inform development of the strategy.
“The government’s plan for a new Industrial Strategy is a positive step towards fostering innovation and growth across the UK,” said IMechE president Dr Clive Hickman OBE.
“However, to truly realise the strategy's potential, it is essential to invest in the development of engineers who will drive the scale-up and deployment of these initiatives nationwide. Aligning skills programmes with industry needs will be critical to ensuring we have the right talent to meet future demands.”
He added: “The green paper rightly states that a successful industrial strategy can only be delivered by working in partnership with all sectors of our economy. Taking a long-term view, with a stable regulatory environment and funding mechanisms, is also essential.
“We look forward to contributing to the consultation and representing the requirements of mechanical engineers in shaping this important strategy.”
The Labour government has positioned itself as both pro-worker and pro-business, announcing plans for a new Employment Rights Bill and courting international business with a promise to slash red tape.
The Manufacturing Technology Centre also welcomed the launch, with CEO Dr Graham Hoare saying the strategy will have “huge implications” for UK manufacturing.
“The prime minister this morning said that the industrial strategy is ‘not about picking winners’,” Dr Hoare said on Monday. “I believe it needs to be about creating winners. That requires the strategy to really make a difference in three areas: creating the confidence to invest; nurturing the skilled people to make it happen; and developing the infrastructure to deliver it.
“These will give us an industrial strategy that not only anchors emerging sectors, but drives growth, providing the UK with the global competitiveness and security that is so urgently required.
“As an organisation which is about the future of work, MTC looks forward to working with the government on delivering a strategy that creates sustainable jobs, growth, and a manufacturing sector that will again be the envy of the world.”
Other industries are also eager to work with the government on the new strategy. Ajai Ahluwalia, head of supply chain for green energy trade organisation RenewableUK, said: “With the UK taking a leading role in developing offshore wind, including new floating wind projects, now is the right time to set an industrial strategy for the sector to maximise the industrial benefits and employment opportunities, which can be created by attracting billions of pounds in private investment to this country.
“The government couldn’t find a more willing partner than the offshore wind sector. We set out an Industrial Growth Plan for offshore wind earlier this year, identifying specific areas within the supply chain in which the UK can secure new investment and be globally competitive, such as cables, blades and floating platforms. A focus on these areas could unlock £25bn in economic activity by 2035, predominantly in our coastal communities which have struggled to secure investment in recent decades.”
Construction was a noticeable absence from the green paper, however, as highlighted by Building magazine.
Brian Berry, chief executive of the Federation of Master Builders, said: “It is deeply concerning that the chancellor and business secretary have... not felt it necessary to include reference to the construction sector as an industry for growth, during a period where the UK is experiencing both a housing and skills crisis that are holding back an economic resurgence and threatening long-term market confidence. Given the focus on rebuilding Britain, it appears those that will be doing the physical work have been forgotten.
"While the government is focussing on inviting big innovative investment, it should not forget the fundamentals of what drives growth. The consultation is an opportunity to ensure that construction doesn't end up as a side show sub-sector in the plan. Construction needs to be front and centre in the government's drive for economic growth."
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Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.