First Report - Post-pandemic economic growth: Industrial policy in the UK

Select Committee
Business and Trade Committee HC 385 28 June 2021
Report Status Government responded
Conclusions & Recommendations 44 items (19 recs)
Source View on Parliament website
Government Response (AI assessment · 44 of 44 classified)
Accepted 13
Acknowledged 13
Not Addressed 17
Rejected 1
Government response
Sixth Special Report - Post-pandemic economic growth: Industrial policy in the UK: Government Response to the Committee’s First Report of Session 2021–22 · published 24 Sep 2021
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Recommendations & Conclusions

13 results
2 Recommendation Accepted
Para 23
The Government now has an opportunity via its Plan for Growth to deliver a more...
Recommendation
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
Government Response Summary
The government refers to its published 'Build Back Better: our plan for growth' and outlines existing strategies and investments in infrastructure, skills, and innovation, stating these deliver its strategic objectives rather than committing to further refining or new metric publication.
Department for Business and Trade
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4 Recommendation Accepted
Para 32
Whether labelled Industrial Strategy or Plan for Growth, industrial policy in the UK will require...
Recommendation
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
Government Response Summary
The government states its approach to industrial policy is set out in "Build Back Better: our plan for growth" and other related strategies, detailing its plans for infrastructure, skills, and innovation, rather than committing to a new statement addressing the specific questions posed.
Department for Business and Trade
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5 Conclusion Accepted
Para 39
Abolition of the Industrial Strategy Council suggests that the Government’s commitment to coordinated industrial policy...
Conclusion
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 Summary
The government details its 'Build Back Better: our plan for growth,' outlining significant investments in infrastructure, skills, and innovation, alongside initiatives like the Advanced Research & Invention Agency and an Innovation Strategy, as its comprehensive approach to economic growth and productivity.
Department for Business and Trade
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12 Conclusion Accepted
Para 61
Overall, the Industrial Strategy’s blend of horizontal policies with vertical sector- based interventions and a...
Conclusion
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 Summary
The government outlines the core programmes of the 2017 Industrial Strategy and states that ongoing aspects will continue, with some policies evolving as part of the Plan for Growth.
Department for Business and Trade
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15 Recommendation Accepted
While we recognise it has chosen not to replicate the Industrial Strategy’s formal structure of...
Recommendation
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
Government Response Summary
The government clarifies that its Plan for Growth adopts a balance of both horizontal, economy-wide interventions and complementary sector-focused vertical policies, with its Innovation Strategy outlining a renewed approach to mission-based innovation.
Department for Business and Trade
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16 Conclusion Accepted
Para 80
A fundamental flaw of post-2017 industrial policy is that the Industrial Strategy failed to embed...
Conclusion
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 Summary
The government describes the core programmes of the 2017 Industrial Strategy and states that ongoing aspects will continue, with some policies evolving as part of the Plan for Growth, without directly addressing the committee's critique of the strategy's complexity or remoteness.
Department for Business and Trade
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18 Conclusion Accepted
Para 82
Sector deals can have a galvanising effect across industries, bringing to bear an industry-wide focus...
Conclusion
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 Summary
The government outlines its approach to sectoral policy within the Plan for Growth, which adopts a balance of both economy-wide horizontal interventions and sector-focused vertical policies.
Department for Business and Trade
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22 Recommendation Accepted
Para 86
In response to this report the Government should set out how it intends to take...
Recommendation
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
Government Response Summary
The government clarifies its sectoral approach involves publishing visions for high-growth sectors, citing the Life Sciences Sector Vision as an example, and confirms that while the Sector Deals Programme is now closed to new deals, existing deals will continue.
Department for Business and Trade
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24 Recommendation Accepted
Government should develop clear ‘defensive’ interventions for sectors going through rapid change, to prepare workers...
Recommendation
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 Summary
The government states that its existing Plan for Jobs, including schemes like Restart and Kickstart, and the UK Community Renewal Fund, already provide support for workers and communities in changing sectors. It also highlights the upcoming Levelling Up White Paper which will set out further plans.
Department for Business and Trade
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36 Conclusion Accepted
Para 149
On this basis, we share the concerns of the Public Accounts Committee (PAC), which called...
Conclusion
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 Summary
The government recognises the Committee's concerns regarding the Industrial Strategy Challenge Fund and states it has agreed a robust action plan to address these, in line with recommendations from various bodies and the levelling up agenda.
Department for Business and Trade
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37 Conclusion Accepted
Para 150
We are concerned that the ISCF as a source of public finance should not reinforce...
Conclusion
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 Summary
The government recognizes the Committee's concerns regarding the Industrial Strategy Challenge Fund (ISCF) and has agreed a robust action plan to address these, aligning with its broader levelling up agenda.
Department for Business and Trade
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38 Recommendation Accepted
Para 151
We recommend that UKRI put in place an action plan which: • sets out how...
Recommendation
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
Government Response Summary
The government recognizes the committee's concerns regarding the Industrial Strategy Challenge Fund (ISCF) and has agreed to a robust action plan to address the recommendations, including ensuring innovation across the UK and better supporting SMEs.
Department for Business and Trade
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41 Conclusion Accepted
Para 169
The post-pandemic and post-Brexit environment will provide the Government with an opportunity to reshape how...
Conclusion
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 Summary
The government published a Green Paper, 'Transforming Public Procurement,' setting out proposals to simplify processes and reduce bureaucracy, and aims to bring forward primary legislation soon after analysing the consultation responses.
Department for Business and Trade
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