Industrial strategy lacks 'political will' - committee report
MPs take aim at the Government's ambitions for the post-Brexit economy, listing a series of doubts over its industrial strategy.
Friday 3 March 2017 07:03, UK
The Government's proposals for a new industrial strategy are short of clarity, insight and are in danger of falling short of the nation's ambition, according to a group of MPs.
A document, named "Building our Industrial Strategy" was as a green paper, designed to provoke debate and raise a set of core issues.
The Prime Minister said it would be at the heart of a programme to tackle low productivity and grow "world-leading" sectors.
It was the latest in a series of industrial strategies created by governments since the 1970s, many of which have missed their targets.
However, today's report from the Business, Energy and Industrial Strategy Committee says the Government's Green Paper has created a "significant opportunity".
However, its 78-page report goes on to list a series of doubts over how effective the strategy can be, accusing the Government of lacking "the political will" to deliver the key objectives of increasing productivity, skills, investment in infrastructure and support for research and development.
"An explicit industrial strategy recognises that many Government policies inherently have an impact on different sectors, nations and regions that comprise the UK's economy," the report said.
"We have a choice as to whether the policies are implemented in an incoherent, ad hoc manner or work together toward a clear vision of the kind of economy we want."
The committee is comprised of six Conservative MPs, four from Labour and one independent.
It said the industrial strategy suggested "a significant shift" from short-term economic growth to longer-term planning, but also called for less rhetoric and a more precise focus on targets.
This report also recommended more power to be devolved to local authorities and for investment in research and development to be raised to 3% of GDP - nearly doubling the present level.
Committee chairman Iain Wright, the Labour MP for Hartlepool, told Sky News: "We understand that we are at the start of the process but the early indications are that this is business as usual, whereas we need something new if we want to provide prosperity for the whole country.
"The Industrial Strategy green paper seems to be about evolution rather than a massive step change. There are good things in there but also things that are not so good - there's not enough emphasis on skills or clarity about how we rebalance the economy, or react to foreign takeovers. What we need is a new direction of travel."
A Department for Business, Energy and Industrial Strategy spokesman said: "Leaving the European Union gives us the opportunity to make fresh choices about our economic future as we build an economy that works for everyone.
"Our modern industrial strategy represents an ambitious long-term vision for the UK that will build on our strengths as a country and deliver a high-skilled economy for the years ahead.
"The green paper is the beginning of an open dialogue to develop this strategy - we welcome contributions to the consultation process and will consider the findings of this report carefully."