Vince Cable has today set out his vision for the future of British Industry, looking at where the UK has a competitive advantage now, and where it can build on that in the next twenty years.
He outlined his plans in a speech to business leaders and committed to a long term, strategic partnership between Government and industry, that will give businesses clarity about where the Government will be concentrating its efforts.
Speaking at Imperial College, London, Business Secretary Vince Cable said:
"Government makes decisions every day that affect the British economy, but has for too long done this in an ad hoc way. Government needs to be more like business, by making strategic plans and sticking to them.
"Our first part of that plan is lifting the barrier that poor access to finance puts on growth. By helping firms to invest capital, businesses expand, and create jobs.
"But I am also setting out a clear and ambitious vision, a commitment far beyond the usual political timescale that will continue to bear fruit decades later. It will give our businesses certainty, allow them to make their own plans, and know that the full weight of Government is behind them. We will work in a strategic partnership with industry, focusing our support on specific sectors. This is our commitment to growth in action."
The speech sets out a number of other actions including:
- Creating a new institution to help companies invest in capital and drive their expansion. The scale and modus operandi of the institution are still under discussion, but it could operate through alternative providers such as the new challenger banks and non-bank lenders. Not only would this boost their lending capacity, but would also corral existing provision such as co-investment and guarantees to support business expansion.
- Developing a series of collaborative but challenging sector strategies in advanced manufacturing, knowledge-intensive traded industries, and the enabling industries. This will include building strategic partnerships with industries and targeting support for them to help realise their substantial growth prospects.
- The Business Secretary announced that 34 bids had been successful in the first round of the Employer Ownership pilot scheme securing £67 million of public funding and generating £98 million in private investment, making sure that employers can access exactly the sort of skills they need. Ensuring our world class skills policy is linked closely to the industrial strategy, in order that industry gets the skills they need to continue growing. This objective underpins the employer ownership pilot scheme where employers have been putting together radical plans to develop their own training programme.
- Accelerating the journey from pure academic research to a commercial product being brought to market to help boost ground-breaking technologies of the future. The Government has already made £180 million available to support the commercialisation of innovations in the life sciences sector and building on this new approach, there will now be a new Innovation and Knowledge centre in Synthetic biology to explore the opportunities this sector presents.
- Recognising Government’s role as a customer and developing a more intelligent partnership with its own supply chain by reforming procurement to make sure that businesses have confidence to take long-term investment decisions.
John Cridland, CBI Director-General, said:
“British business has been challenging the Government to put in place firm foundations on which our companies can build their long-term futures and rebalance our economy.
“The UK is a world leader in many sectors and if we are to secure significant growth in the decades to come, the Government must enable them to capitalise on their competitive advantages and stay ahead of international rivals.
“Politicians of all persuasions need a laser-like focus to provide a stable and supportive policy environment. Today’s commitment from the Business Secretary is a valuable first step on this critical path to future success.”
Notes to editors
- The Business Secretary outlined the strategy, which builds on the Plan for Growth and progresses work already underway with some business sectors, in a speech to Imperial College, London. The speech will be available from www.bis.gov.uk/newsroom
- An analytical paper published today details the wide range of factors considered when identifying sectors:
o historic performance
o likely drivers of future growth
o potential barriers to growth
3. Advanced manufacturing includes disciplines such as aerospace, automotive and life sciences; knowledge intensive traded industries includes higher and further education and professional and business services, and enabling industries encompasses sectors such as information economy, construction and energy.
4. The Government's economic policy objective is to achieve 'strong, sustainable and balanced growth that is more evenly shared across the country and between industries.' It set four ambitions in the ‘Plan for Growth’ (PDF 1.7MB), published at Budget 2011:
· To create the most competitive tax system in the G20
· To make the UK the best place in Europe to start, finance and grow a business
· To encourage investment and exports as a route to a more balanced economy
· To create a more educated workforce that is the most flexible in Europe.
Work is underway across Government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the Government wants the economy to travel.
5. BIS's online newsroom contains the latest press notices and speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.