28 Accepted

Department lacks specific objectives for Industrial Strategy despite setting a growth target.

Conclusion
We asked the Department how it would measure success. Officials told us growth was its overarching objective as measured by GDP per head and real household disposable income. The Department highlighted that trade-offs were required under an industrial strategy and deciding to support one sector over another could not be put down to a simple formula.57 While the Department has yet to specify objectives for the forthcoming Industrial Strategy, the Permanent Secretary said it would be a failure if, in two to three years, the UK growth rate had not improved to at least the G7 average from 1.6% to 1.8%.58 54 Q 80 55 C&AG’s Report, paras 3.3-3.5 56 Q 80 57 Qq 43-45 58 Q 88 17
Government Response Summary
The government states it has implemented a recommendation (though the committee labelled it a conclusion) by committing to regularly review progress against the Industrial Strategy, supported by the ISAC and a public monitoring and evaluation approach. They have defined top-level objectives as increases in GDP per capita and Real Household Disposable Income, underpinned by an impact pathway.
Government Response
Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented. The government has committed to regularly reviewing progress against the Industrial Strategy. As above, implementation is a government-wide effort, underpinned by shared objectives and metrics. This will be supported by the ISAC through its expertise on monitoring and evaluation and continued advice on policy development and delivery, helping ensure the Industrial Strategy remains fit for purpose. In addition, all fiscal events will set out the government’s continued support for the Industrial Strategy and the IS-8 growth-driving sectors. The department has opted for a public approach to monitoring and evaluation, supported by the ISAC (set out above). This is underpinned by an impact pathway, as outlined in the technical annex published alongside the Industrial Strategy, which sets out the underlying logic tracking individual policies to real world outcomes to achieve the Industrial Strategy’s goal of long-term, sustainable, regionally balanced, and resilient growth. Government departments and public bodies will carry out monitoring and evaluation for their individual policies and Sector Plans. 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.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.1 yr
Report published 25 Jun 2025