Post-pandemic economic growth: Industrial Strategy

Business and Trade Committee Closed Inquiry
Opened: 23 Jul 2020 Closed: 27 Sep 2021 Parliament page
In our inquiry into Post-pandemic economic growth: Industrial strategy we will look at the options available to Government to secure our economic recovery from the impact of the coronavirus pandemic. We will want to examine whether the Government’s current industrial strategy is fit for purpose, whether it is genuinely strategic, … Read more
13 Recommendations
31 Conclusions
1 Report
5 Oral sessions
2 Letters
8 Events
Activity timeline 17 events
24 Sep
2021
Report published
28 Jun
2021
Report published
11 Mar
2021
Correspondence
4 Mar
2021
Correspondence
2 Mar
2021
Oral evidence
2 Mar
2021
Formal meeting (oral evidence session) · Virtual meeting
26 Jan
2021
Oral evidence
26 Jan
2021
Formal meeting (oral evidence session) · Virtual meeting
14 Jan
2021
Informal meeting · Virtual Meeting
15 Dec
2020
Oral evidence
15 Dec
2020
Formal meeting (oral evidence session) · Room 5, Palace of Westminster
10 Dec
2020
Informal meeting · Virtual Meeting
Oral evidence sessions 5 sessions
2 Mar 2021
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Post
Andy Haldane · Industrial Strategy Council Charlie Mayfield · Industrial Strategy Council Dame Kate Barker CBE · Industrial Strategy Council Professor Dame Nancy Rothwell · Industrial Strategy Council
26 Jan 2021
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Oral evidence session; Oral evidence
Amanda Solloway · Department for Business, Energy and Industrial Strategy Dame Ottoline Leyser · UK Research and Innovation Dick Elsy CBE · High Value Manufacturing Catapult Dr David Connell · Centre for Business Research, University of Cambridge Dr Jeremy Silver · Digital Catapult Jessica Skilbeck · Department for Business, Energy and Industrial Strategy Mike Biddle · Innovate UK Professor Chris Day · University of Newcastle
15 Dec 2020
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Panel 1
Catherine Lewis La Torre · British Business Bank Irene Graham · ScaleUp Institute James Wise · Balderton Capital
8 Oct 2020
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Opportunities for growth
Anthony Walker · Tech UK Gareth Stace · UK Steel Guy Newey · Energy Systems Catapult Mike Hawes · Society of Motor Manufacturers and Traders Nick Owen · Professional and Business Services Council Paul Everitt · ADS Group Paul Everitt · ADS Peter Ellingworth · Association of British HealthTech Industries Stephen Phipson CBE · Make UK
24 Sep 2020
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Post-pandemic economic growth: Industrial Strategy
Dr Anna Valero · LSE Kate Bell · Trades Union Congress (TUC) Rain Newton-Smith · Confederation of British Industry (CBI) Rain Newton-Smith · Confederation of British Industry Rt Hon Greg Clark · House of Commons Science and Technology Committee
Title HC No. Published Items Response
First Report - Post-pandemic economic growth: Industrial policy … HC 385 28 Jun 2021 44 Responded
Recommendations & Conclusions
44 results
1 Conclusion
First Report - Post-pandemic econo…
The economic outlook has been fundamentally altered by the Covid-19 pandemic and by Brexit, and...
The economic outlook has been fundamentally altered by the Covid-19 pandemic and by Brexit, and today’s circumstances therefore require a revised focus in industrial policy. However, some of the foundations and long-term challenges that the 2017 strategy sought to address … Read more
Government Response
The Government is grateful to you and the Committee for its inquiry and report on ‘Post- pandemic economic growth: Industrial Strategy’. Since the report’s publication on 28 June, we have … Read more
Department for Business and Trade
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2 Recommendation
First Report - Post-pandemic econo…
The Government now has an opportunity via its Plan for Growth to deliver a more...
The Government now has an opportunity via its Plan for Growth to deliver a more narrow and focused set of polices than the 142 that emerged from the 2017 strategy. We note that the Industrial Strategy Council’s analysis suggests the … Read more
Department for Business and Trade
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3 Conclusion
First Report - Post-pandemic econo…
Coordinated and strategic industrial policy is required if the Government is to meet its growth,...
Coordinated and strategic industrial policy is required if the Government is to meet its growth, levelling up and net zero ambitions. It appears that many aspects of the Plan for Growth will be overseen by a cross-cabinet committee chaired by … Read more
Government Response
The Government is focussed on the delivery of these ambitious objectives, and its planning and performance framework is being reformed to support this. Published Outcome Delivery Plans (ODPs)1 are being … Read more
Department for Business and Trade
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4 Recommendation
First Report - Post-pandemic econo…
Whether labelled Industrial Strategy or Plan for Growth, industrial policy in the UK will require...
Whether labelled Industrial Strategy or Plan for Growth, industrial policy in the UK will require scale and a long-term commitment from Government to be successful. In response to this report the Government should set out: • How it will improve … Read more
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5 Conclusion
First Report - Post-pandemic econo…
Abolition of the Industrial Strategy Council suggests that the Government’s commitment to coordinated industrial policy...
Abolition of the Industrial Strategy Council suggests that the Government’s commitment to coordinated industrial policy that can withstand and benefit from independent scrutiny has waned. The Council’s abolition risks expanding the gap between Government and the industries that must deliver … Read more
Government Response
6. The Government published its strategic objectives for the economy in Build Back Better: our plan for growth on 3 March 2021, alongside the Budget. It sets out how the … Read more
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6 Conclusion
First Report - Post-pandemic econo…
The Secretary of State’s decision to axe the Industrial Strategy Council is difficult to reconcile...
The Secretary of State’s decision to axe the Industrial Strategy Council is difficult to reconcile with his conclusion that the Council did a good job - a conclusion with which we agree. The more challenging context today enhances the necessity … Read more
Government Response
6. The Government published its strategic objectives for the economy in Build Back Better: our plan for growth on 3 March 2021, alongside the Budget. It sets out how the … Read more
Department for Business and Trade
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7 Conclusion
First Report - Post-pandemic econo…
Abolishing the Industrial Strategy Council was a retrograde step.
Abolishing the Industrial Strategy Council was a retrograde step. We are concerned that the Government has disregarded and rejected the benefit of independent long- term analysis and evaluation. Without independent scrutiny implementation of industrial policy will be compromised at best … Read more
Government Response
83. The Government has noted the Select Committee’s interest in the role of the National Economy and Recovery Taskforce (NERT) in developing industrial policy, and its recommendation to publish the … Read more
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8 Recommendation
First Report - Post-pandemic econo…
The abolition of the Industrial Strategy Council removes the opportunity to provide independent analysis over...
The abolition of the Industrial Strategy Council removes the opportunity to provide independent analysis over industrial policy in the long term. The Government must ensure that effective scrutiny is put in place in another form in order to measure outcomes … Read more
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9 Conclusion
First Report - Post-pandemic econo…
Uncertainty about the relevance or content of the Industrial Strategy suggests that, in combination, the...
Uncertainty about the relevance or content of the Industrial Strategy suggests that, in combination, the strategy’s multiple overlapping features made it overly complex and obscured its purpose. The extent to which the strategy’s Foundations and Grand Challenges shaped the day-to-day … Read more
Government Response
The Government recognises the importance of working closely and collaboratively with key stakeholders, in the business community and beyond, to ensure that the Government’s plans address challenges faced by business … Read more
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10 Conclusion
First Report - Post-pandemic econo…
The UK Government should clarify how the devolved Governments will be involved in the design...
The UK Government should clarify how the devolved Governments will be involved in the design and delivery of future policies and strategies associated with the Plan for Growth. The UK Government should implement lessons from the devolved Governments’ experience of … Read more
Government Response
11. There has been no change in the machinery of Government or in departmental responsibilities. The Treasury remains the Government’s economics and finance ministry; and BEIS retains its responsibility for … Read more
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11 Conclusion
First Report - Post-pandemic econo…
In addition to co-production with the Devolved Administrations, the Plan for Growth should be developed...
In addition to co-production with the Devolved Administrations, the Plan for Growth should be developed with regional and local leaders in England with a focus on promoting local engagement with industrial policy, and not merely a strategy document for consumption … Read more
Government Response
11. There has been no change in the machinery of Government or in departmental responsibilities. The Treasury remains the Government’s economics and finance ministry; and BEIS retains its responsibility for … Read more
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12 Conclusion
First Report - Post-pandemic econo…
Overall, the Industrial Strategy’s blend of horizontal policies with vertical sector- based interventions and a...
Overall, the Industrial Strategy’s blend of horizontal policies with vertical sector- based interventions and a mission-oriented approach offered significant flexibility for policymakers. The mission-based approach helped to provide direction of travel and focus for both the Government and industry on … Read more
Government Response
The 2017 Industrial Strategy consisted of several core programmes, including Sector Deals, Grand Challenges and Missions, Foundations and Local Industrial Strategies. Delivery of ongoing aspects of the 2017 Industrial Strategy … Read more
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13 Conclusion
First Report - Post-pandemic econo…
When launched in 2017, the fundamental purpose of the Industrial Strategy was to address poor...
When launched in 2017, the fundamental purpose of the Industrial Strategy was to address poor productivity in the UK, particularly outside of the South East. However, improved productivity was not itself a Grand Challenge or mission of the strategy. This … Read more
Government Response
14. The 2017 Industrial Strategy consisted of several core programmes, including Sector Deals, Grand Challenges and Missions, Foundations and Local Industrial Strategies. Delivery of ongoing aspects of the 2017 Industrial … Read more
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14 Conclusion
First Report - Post-pandemic econo…
We are concerned that the Plan for Growth lacks mission-based structures (beyond references to net...
We are concerned that the Plan for Growth lacks mission-based structures (beyond references to net zero and levelling up) or formal mechanisms for strategic sectoral engagement and support. The reduced emphasis on these elements lessens the formal complexity of the … Read more
Government Response
14. The 2017 Industrial Strategy consisted of several core programmes, including Sector Deals, Grand Challenges and Missions, Foundations and Local Industrial Strategies. Delivery of ongoing aspects of the 2017 Industrial … Read more
Department for Business and Trade
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15 Recommendation
First Report - Post-pandemic econo…
While we recognise it has chosen not to replicate the Industrial Strategy’s formal structure of...
While we recognise it has chosen not to replicate the Industrial Strategy’s formal structure of Sector Deals, Foundations, and Grand Challenges and missions, the Government should clarify what balance it has sought between vertical, horizontal and mission-led policy in the … Read more
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16 Conclusion
First Report - Post-pandemic econo…
A fundamental flaw of post-2017 industrial policy is that the Industrial Strategy failed to embed...
A fundamental flaw of post-2017 industrial policy is that the Industrial Strategy failed to embed itself as touchstone for British industry. Each foundation and mission of the Strategy was appropriate in its own right, but in combination the Industrial Strategy … Read more
Government Response
The 2017 Industrial Strategy consisted of several core programmes, including Sector Deals, Grand Challenges and Missions, Foundations and Local Industrial Strategies. Delivery of ongoing aspects of the 2017 Industrial Strategy … Read more
Department for Business and Trade
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17 Conclusion
First Report - Post-pandemic econo…
While some businesses in some sectors were aware of the strategy’s purpose and objectives, for...
While some businesses in some sectors were aware of the strategy’s purpose and objectives, for many it was distant, did not provide clear direction nor influence decision making. We would like Government to ensure that future industrial policy is easily … Read more
Government Response
The 2017 Industrial Strategy consisted of several core programmes, including Sector Deals, Grand Challenges and Missions, Foundations and Local Industrial Strategies. Delivery of ongoing aspects of the 2017 Industrial Strategy … Read more
Department for Business and Trade
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18 Conclusion
First Report - Post-pandemic econo…
Sector deals can have a galvanising effect across industries, bringing to bear an industry-wide focus...
Sector deals can have a galvanising effect across industries, bringing to bear an industry-wide focus on enhancing skills and advancing research and development. We are mindful, however, that multiple sector deals can spread resources too thinly and that ‘horizontal’ mission … Read more
Government Response
The Government’s approach to sectoral policy draws on the academic consensus that identifies economy-wide horizontal interventions – on regulation, research, skills, infrastructure, business environment and innovation – as the bedrock … Read more
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19 Conclusion
First Report - Post-pandemic econo…
The Secretary of State’s commitment to maintain the existing sector deals does not fully address...
The Secretary of State’s commitment to maintain the existing sector deals does not fully address long-term concerns about the Government’s approach to sectoral policy. Whether the Government intends to refocus and prioritise its sectoral Post-pandemic economic growth: Industrial policy in … Read more
Government Response
The Government remains committed to building long-term strategic partnerships with businesses across all sectors. The Plan for Growth committed to set out a vision for high-growth sectors and technologies where … Read more
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20 Conclusion
First Report - Post-pandemic econo…
Each sector deal is different, some are new whilst some established in 2017 built on...
Each sector deal is different, some are new whilst some established in 2017 built on cross-sector working already in place. There is value in maintaining the sectoral approach—but clear measures of success and failure are required.
Government Response
21. The Government recognises the importance of working closely and collaboratively with key stakeholders, in the business community and beyond, to ensure that the Government’s plans address challenges faced by … Read more
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21 Recommendation
First Report - Post-pandemic econo…
The Government should maintain sector deals, not least to ensure an appropriate and strategic balance...
The Government should maintain sector deals, not least to ensure an appropriate and strategic balance between vertical and horizontal policy interventions as described in Chapter 3. However, we are concerned that outside the structure of the Industrial Strategy, sector deals … Read more
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22 Recommendation
First Report - Post-pandemic econo…
In response to this report the Government should set out how it intends to take...
In response to this report the Government should set out how it intends to take forward a sectoral approach to industrial policy. The Government should explain how reprioritisation may be consistent with maintaining the existing deals and whether a coordinated … Read more
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23 Recommendation
First Report - Post-pandemic econo…
In light of the shocks experienced across the economy and society the Government should establish...
In light of the shocks experienced across the economy and society the Government should establish a plan to review each sector deal to account for the impact Covid-19 has had on employment, pay and productivity.
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24 Conclusion
First Report - Post-pandemic econo…
Government should develop clear ‘defensive’ interventions for sectors going through rapid change, to prepare workers...
Government should develop clear ‘defensive’ interventions for sectors going through rapid change, to prepare workers and communities for the loss of jobs and/or businesses that will inevitably occur in their local communities, and to support them in taking advantage of … Read more
Government Response
The Government recognises that there are several sectors undergoing rapid change, including those who have been significantly impacted by Covid-19. The Plan for Jobs programme is a part of the … Read more
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25 Conclusion
First Report - Post-pandemic econo…
The process of developing Local Industrial Strategies was a useful exercise for many areas, even...
The process of developing Local Industrial Strategies was a useful exercise for many areas, even where no strategy was ultimately agreed with central Government. However, it is unclear what impact they have had in practice at either increasing local growth … Read more
Government Response
56. The Government has worked with all places across England, through the Cities and Local Growth Unit (MHCLG/BEIS) to develop Local Industrial Strategies (LIS). However, in the four years since … Read more
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26 Conclusion
First Report - Post-pandemic econo…
We are concerned that so few local strategies were agreed and published, and at evidence...
We are concerned that so few local strategies were agreed and published, and at evidence which calls into question the varying ability of local institutional structures to take forward industrial policymaking. Regardless of whether the specific Local Industrial Strategy model … Read more
Government Response
Post-pandemic economic growth: Industrial policy in the UK: Government Response 7
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27 Conclusion
First Report - Post-pandemic econo…
The Local Industrial Strategy model faced key limitations, including: a lack of associated long-term funding...
The Local Industrial Strategy model faced key limitations, including: a lack of associated long-term funding that could help unlock local investments; variable local institutional capacity to develop, implement and evaluate local strategies; limited priority and capacity within central Government to … Read more
Government Response
29. The Government agrees with the Committee that its policies and strategies should support the whole economy and deliver for all parts of the UK.
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28 Recommendation
First Report - Post-pandemic econo…
We conclude that Local Industrial Strategies are useful and should be continued in the future,...
We conclude that Local Industrial Strategies are useful and should be continued in the future, but that the Government should set out how it will ensure that local areas are equipped with the skills, resource and incentives needed to produce … Read more
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29 Conclusion
First Report - Post-pandemic econo…
The Government’s recognition of the value of the insights generated through the process of working...
The Government’s recognition of the value of the insights generated through the process of working with local areas to design, and in some cases agree, Local Industrial Strategies is welcome. However, it does not address the fundamental uncertainty regarding the … Read more
Government Response
29. The Government agrees with the Committee that its policies and strategies should support the whole economy and deliver for all parts of the UK.
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30 Conclusion
First Report - Post-pandemic econo…
The process of designing Local Industrial Strategies effectively underpinned strategic conversations about industrial policy at...
The process of designing Local Industrial Strategies effectively underpinned strategic conversations about industrial policy at the local level. In particular, the insights and networks they generated among local stakeholders could support the effective use of central Government funding for levelling … Read more
Government Response
56. The Government has worked with all places across England, through the Cities and Local Growth Unit (MHCLG/BEIS) to develop Local Industrial Strategies (LIS). However, in the four years since … Read more
Department for Business and Trade
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31 Recommendation
First Report - Post-pandemic econo…
The Government should clarify whether a new structure will replace Local Industrial Strategies, or what...
The Government should clarify whether a new structure will replace Local Industrial Strategies, or what form local growth plans will take in future. This would help to ensure a strategic approach can be taken to distributing funding through levelling up … Read more
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32 Conclusion
First Report - Post-pandemic econo…
The paucity of agreed Local Industrial Strategies ultimately limited the contribution of local insights and...
The paucity of agreed Local Industrial Strategies ultimately limited the contribution of local insights and intelligence into national industrial policy. However, co-creation of industrial policy at local and national level is the right approach and was a strength of the … Read more
Government Response
32. The Government’s approach to sectoral policy draws on the academic consensus that identifies economy-wide horizontal interventions – on regulation, research, skills, infrastructure, business environment and innovation – as the … Read more
Department for Business and Trade
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33 Recommendation
First Report - Post-pandemic econo…
The Government should clarify through what mechanism it intends to incorporate local industrial and economic...
The Government should clarify through what mechanism it intends to incorporate local industrial and economic insights and intelligence into future national-level policies—in particular, into the Plans, Strategies and Reviews listed in the Plan for Growth which the Government has said … Read more
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34 Conclusion
First Report - Post-pandemic econo…
The growth capital gap is a brake on the ability of small businesses to innovate...
The growth capital gap is a brake on the ability of small businesses to innovate and accelerate their growth. Venture capital in the UK does not always fill the gap and support the right businesses in the right places at … Read more
Government Response
35. The Government remains committed to building long-term strategic partnerships with businesses across all sectors. The Plan for Growth committed to set out a vision for high-growth sectors and technologies … Read more
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35 Conclusion
First Report - Post-pandemic econo…
International investment in British businesses can support growth and is positive on an individual basis.
International investment in British businesses can support growth and is positive on an individual basis. The flow of businesses and IP out of the UK, however, as a consequence of the international venture capital model is cause for concern. The … Read more
Government Response
35. The Government remains committed to building long-term strategic partnerships with businesses across all sectors. The Plan for Growth committed to set out a vision for high-growth sectors and technologies … Read more
Department for Business and Trade
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36 Conclusion
First Report - Post-pandemic econo…
On this basis, we share the concerns of the Public Accounts Committee (PAC), which called...
On this basis, we share the concerns of the Public Accounts Committee (PAC), which called into question the extent to which the Industrial Strategy Challenge Fund (ISCF) supports research-orientated small businesses. Given the scale of the funding attached to the … Read more
Government Response
61. The Government recognises the concerns raised by the Committee regarding the Industrial Strategy Challenge Fund (ISCF) and have agreed a robust action plan that will address the recommendations made … Read more
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37 Conclusion
First Report - Post-pandemic econo…
We are concerned that the ISCF as a source of public finance should not reinforce...
We are concerned that the ISCF as a source of public finance should not reinforce the trends seen in access to private finance, in particular venture capital. In addition, we are concerned that difficult approval processes and the challenge of … Read more
Government Response
61. The Government recognises the concerns raised by the Committee regarding the Industrial Strategy Challenge Fund (ISCF) and have agreed a robust action plan that will address the recommendations made … Read more
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38 Recommendation
First Report - Post-pandemic econo…
We recommend that UKRI put in place an action plan which: • sets out how...
We recommend that UKRI put in place an action plan which: • sets out how they will ensure that the ISCF stimulates innovation in all the nations and regions of the UK; • details how UKRI will reverse the trend … Read more
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39 Conclusion
First Report - Post-pandemic econo…
The Advanced Research and Invention Agency (ARIA) could provide a mechanism to contract for innovation...
The Advanced Research and Invention Agency (ARIA) could provide a mechanism to contract for innovation by driving public-private collaboration and encouraging 54 Post-pandemic economic growth: Industrial policy in the UK competition between commercial organisations to secure alternative sources of investment … Read more
Government Response
40. The Government recognises the huge impact that Covid-19 has had across sectors and is committed to supporting businesses and individuals across all sectors through the provision economy-wide support packages, … Read more
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40 Conclusion
First Report - Post-pandemic econo…
We note the conclusion of the House of Commons Science and Technology Committee that ARIA...
We note the conclusion of the House of Commons Science and Technology Committee that ARIA is a “brand in search of a product” and share concerns that its function remains uncertain. ARIA’s remit and objectives are very broad and we … Read more
Government Response
40. The Government recognises the huge impact that Covid-19 has had across sectors and is committed to supporting businesses and individuals across all sectors through the provision economy-wide support packages, … Read more
Department for Business and Trade
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41 Conclusion
First Report - Post-pandemic econo…
The post-pandemic and post-Brexit environment will provide the Government with an opportunity to reshape how...
The post-pandemic and post-Brexit environment will provide the Government with an opportunity to reshape how public procurement can be used to drive innovation by British businesses. Whilst there was no appetite amongst witnesses for industrial policy to be used to … Read more
Government Response
78. On the Committee’s request for the Treasury to set out its plans for modernising Government procurement rules, last year (December 2020), the Cabinet Office published the Green Paper Transforming … Read more
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42 Conclusion
First Report - Post-pandemic econo…
Whilst the future of the Grand Challenges is uncertain the fundamental issues which underpinned them...
Whilst the future of the Grand Challenges is uncertain the fundamental issues which underpinned them remain pertinent. A growing R&D budget channelled through the Industrial Strategy Challenge Fund and the Advanced Research and Invention Agency, in combination with a modification … Read more
Government Response
17. Much of the Government’s 2017 Grand Challenges and Missions work, including the Government’s commitment to Net Zero, is now core Government policy. The time is right to evolve the … Read more
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43 Recommendation
First Report - Post-pandemic econo…
British business should be provided with a clear picture of the landscape in which it...
British business should be provided with a clear picture of the landscape in which it will operate in the post-Brexit and post-Covid-19 era. We recommend that the Government publish an overview of the scale and nature of its future relationship … Read more
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44 Recommendation
First Report - Post-pandemic econo…
To provide clear direction the Government should present to the House an updated industrial policy...
To provide clear direction the Government should present to the House an updated industrial policy statement which sets out the Government’s strategic assessment of industrial policy in the UK. The Government should provide:(Paragraph 180) • Confirmation of who is leading … Read more
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Correspondence 2 letters
11 Mar 2021 To committee Letter from the Secretary of State to the Chair on the Industrial Strategy
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4 Mar 2021 To committee Letter from the Chair to the Secretary of State regarding the future of the Industrial Strategy
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