THE GREENING OF A MODERN UK INDUSTRIAL STRATEGY The government’s Green Paper on its proposed Modern Industrial Strategy sets out a 10-year plan intended to deliver the certainty and stability that businesses need to invest in high-growth sectors. It argues that “the case for governments to roll up their sleeves and shape markets, rather than step back in the face of the challenges [in the global economy], is stronger than ever. To capture the growth the UK so desperately needs, we need a modern industrial strategy to share in the next decade’s growth opportunities. “This industrial strategy will provide a launchpad for businesses,” the Paper continues. “It provides the rm foundation for investment that businesses have told us they need. This government believes it is our role to provide the certainty that inspires condence, allowing businesses to plan not just for the next year, but for the next 10 years and beyond. “We will not repeat the mistakes of the past, with policy changing as fast as decision-makers,” it adds. “To put an end to the policy merry-go-round, we are going to establish a statutory Industrial Strategy Council, hardwiring stability and long-termism into our plan from the start.” Encouraging words, but at this stage the Industrial Strategy is short on detail. The esh will be put on the bones after a period of consultation and the subsequent publication of a fuller document. But even before the Green Paper had been published, the prospect of a new industrial strategy appeared enticing to UK manufacturers. A survey conducted by Make UK and RSM UK prior to the publication revealed that most UK manufacturers (70%) believe that a long-term industrial strategy could lead to a surge in previously oshored manufacturing being brought back to the UK. The survey of 209 companies found that half of UK manufacturers would increase investment in their UK facilities in response to a new strategy, 30% would adopt more automation, 29% would boost exports to the EU, while 26% would raise their R&D budgets. Contrary to a widespread belief, the survey also found that UK-owned companies invest more than foreign-owned companies operating in the UK in both plant and machinery (8.7% compared to 4.7%) and R&D (5.5% compared to 5%). According to Make UK, this shows the potential benets of an industrial strategy that creates growth among UK businesses, which then scale up. The survey also shows that plant and machinery (53%) and sta (52%) are the top two investment priorities for UK manufacturers. Almost two-thirds of manufacturers (64%) say that they invest up to 10% of their turnover in plant and machinery, with a further 26% investing 10-50% of turnover. The government has picked eight sectors which it believes have the highest growth potential. One of them is advanced manufacturing, which suggests that if your manufacturing activities are not “advanced”, you might not warrant future government support. Obviously, the government cannot back every sector of industry, but even traditional – or “non-advanced” – sectors could have an important role to play in the UK’s industrial future. Tony Sacks, Editor n COMMENT Ǖ Ǒ ǒ Lj ť Lj ƪ Lj Ǜ ǒ Ǖ Ǒ ǒ Ǖ ǒ įĦ Ơ Ĩĭ ĦĦĦĶ ħĦĨĨ Ǖ Ƭ ĶĪĪ ƮĦƯĨĦ ĩħįĬ ĪĪħĪ ĬĦĦĶ Ǒ ĭ Ǒ
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