Today, the Government published its awaited Industrial Strategy, 'Invest 2035,' setting out a 10-year vision and plan across eight selected sectors (advanced manufacturing, creative industries, life sciences, clean energy, defence, digital and technologies, professional and business services, financial services) that have been identified as priority areas. A cornerstone of Labour's Manifesto and Plan for Change, the Strategy ultimately intends to create a business environment which boosts investment and kickstarts economic growth.
There are ten areas identified in which government will work to improve the 'investor journey'. Some of the most relevant include improving existing trade agreements as well as establishing new ones; introducing significant reforms to the skills and planning systems; and reducing the regulatory burden businesses face. The Government also plans to reduce electricity costs for those businesses who use high amounts, through a new 'British industrial competitiveness scheme'.
The Strategy also refers to announcements previously made, which aim to contribute to an investment and growth-friendly environment. These include announcements of funding for transport infrastructure, local funding for skills and Local Growth Plans, and the proposed creation of new Investment Zones and Freeports.
Some elements, including the British industrial competitiveness scheme, will be subject to consultation in the coming months.
Tom Ironside, Director of Business and Regulation at the BRC, said:
“Retail may not be one of the Government’s priority ‘sectors’ under the Industrial Strategy, but the industry remains at the heart of the everyday economy. It makes up 5% of the economy (by GVA) and remains the UK’s largest private-sector employer. It is crucial that that initiatives to improve skills, reduce regulatory burdens and remove planning barriers deliver not just for the priority growth sectors but also for retail. The Government must embed flexibility into the new Growth and Skills Levy so retailers can deliver the most relevant training for their workforce. It is also essential that no shop pays more as a result of business rates reform, allowing retailers to invest more in high streets and communities across the country. Both would be positive pro-growth moves.
On the cutting of energy costs for some UK businesses:
“The Industrial Strategy will introduce a new scheme to reduce electricity costs for thousands of energy-intensive businesses. It is essential that the costs incurred by these reductions are not redistributed to other industries, including retail and its supply chains, as has been the case with some initiatives in the past."
