26
Accepted
Department unable to detail Industrial Strategy's future funding and scope currently.
Conclusion
We asked the Department what the forthcoming Industrial Strategy will mean for the scale and composition of its support for industry going forward. The Department told us it was preparing for an upcoming spending review and therefore could not provide more insights now, but that it was using the process as an opportunity to consider its options. The Department said it would “caution against measuring the success of an industrial policy by the amount of funding that goes into it,” stating that while funding is “obviously important [ … ] it is not just about the money.” By way of an example, the Department referenced a recent Department for Transport mandate on zero emissions vehicles as being as important for the future of the automotive industry as any financial support it could offer for research and development.53 49 C&AG’s Report, para 2 50 Qq 81-83 51 Q 82 52 Q 82 53 Q 81 16
Government Response Summary
The government states the Modern Industrial Strategy priorities are embedded in budgets and commits to collaborating across government to enhance tracking, reporting, and strategic analysis of support for Industrial Strategy sectors, developing an analytical program with ISAC for monitoring and evaluation.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented. The UK’s Modern Industrial Strategy was published alongside the Spending Review and its priorities are embedded in departmental budgets for the remainder of this Parliament. Each of the IS-8 growth-driving sectors also has a bespoke 10-year Sector Plan, underpinned by R&D and infrastructure commitments. Government departments are required to monitor and evaluate policy delivery and impact. Departments already track their support to businesses; for example, the department can break down its business support grants by sector. The department will collaborate across government and public bodies to enhance tracking and reporting of support to the Industrial Strategy sectors, refine sector definitions, and conduct strategic analysis (e.g. using company microdata) to assess policy effectiveness and economic trends. This analytical programme will be developed in partnership with ISAC to support the Industrial Strategy’s monitoring and evaluation.
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