25
Accepted
Industrial Strategy prioritisation of growth sectors may disappoint other industries
Conclusion
The Department said it recognises that, with limited resources, it will be required to make difficult decisions about what it is prioritising in the forthcoming Strategy, noting that “some people will be disappointed in what we are able to do for them, because government cannot do everything.” The Department told us the new government had been clear about what it saw as the sources of growth and highlighted that the UK’s last industrial strategy was criticised as trying to provide “all things for all people”.51 We asked the Department what the Industrial Strategy will mean for sectors not designated ‘growth-driving’. The Department acknowledged that while it cared about all sectors, it had been clear about where it would put its focus to drive exports and investment. The Department told us it recognised that sectors such as steel were foundational to the UK economy and that it wanted to ensure the wider UK environment is a good place for all businesses to prosper.52
Government Response Summary
The government will align industry support with strategic priorities, introduce new 'place-based business cases' and supplementary guidance, and collaborate with advisory bodies by Summer 2026 to maximize impact across jobs, skills, and regional growth. It also details the analytical approach used to identify and support various industries within the Industrial Strategy.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: Summer 2026. The government is aligning industry support with strategic priorities, including the Industrial Strategy. Following the Green Book Review 2025: Findings and actions policy paper publication in June, new ‘place-based business cases’ will assess complementary projects in specific regions. Supplementary guidance on economic resilience will ensure private sector contributions are consistently appraised. The department and HM Treasury will work with ISAC, the Industrial Development Advisory Board and other bodies to address barriers and maximise the impact of business-facing funds on jobs, skills, resilience, regional growth, small businesses, and net zero. The government defines top-level objectives for the growth mission by increases in Gross Domestic Product (GDP) per capita and Real Household Disposable Income. The Industrial Strategy supports both by enhancing productivity, the key long-term growth driver. Invest 2035: The UK’s Modern Industrial Strategy, a Green Paper and public consultation document published in October 2024, identified the eight growth-driving sectors using indicators such as output, productivity, and international position. The department also assessed the fronter industries where government intervention could have the greatest impact. This identified over 30 ‘frontier industries’ within the IS-8 growth-driving sectors, as well as eight supporting ‘foundational sectors and inputs’ which are critical to frontier industries’ success. critical to frontier industries’ success. There is no one-size-fits-all method for identifying which frontier industries have the most growth potential. The department drew on a variety of quantitative and qualitative evidence, including responses to the Invest 2035 consultation and an extensive programme of expert engagement to test its assessments. Frontier industries were selected based on growth potential and alignment with strategic objectives (net zero, regional growth, resilience). Assessments used mixed evidence and scoring methods (Likert scale, RAG rating) and were moderated by multiple assessors. The high-level approach to this was set out in the Technical Annex published alongside the main Industrial Strategy. Foundational industries and strategic inputs were also analysed using qualitative and quantitative evidence, including consultation responses. A new supply chain centre will refine this work with industry.
Source
Committee
Public Accounts Committee
Report
33rd Report - Supporting the UK’s priority industry sectors
25 Jun 2025
HC 1070
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.1 yr
Report published
25 Jun 2025