Long-Term Plan Sets Out Ambitious 2030 Vision Aimed At Boosting Productivity

Business Secretary Greg Clark has today launched the government’s ambitious Industrial Strategy.

The long-awaited white paper follows extensive engagement by government following its green paper consultation which was launched at the start of the year.

Following last week’s announcement by the Prime Minister to increase the level of investment in R&D from 1.7% to 2.4% of GDP by 2027, the report sets out a long-term vision for making the UK the world’s most innovative nation by 2030.

Key announcements include:

• A commitment to investing a further £725 million over the next three years in the Industrial Strategy Challenge Fund to respond to some of the greatest global challenges and the opportunities faced by the UK. 
• The government will press ahead with a series of sector deals across construction, life sciences, automotive and AI.
• The government has identified four ‘grand challenges’ for the UK’s economy which must be embraced. These are artificial intelligence, clean growth, ageing society and future of mobility.
• The white paper focuses on the five foundations of productivity – ideas, people, infrastructure, business environment and places.
• An Independent Industrial Strategy Council will be launched in 2018 to make recommendations to government on how it measures success.

Business Secretary Greg Clark said: “The way we earn and live our lives as workers, citizens and consumers is being transformed by new technologies. The UK is well-placed to benefit from this new industrial revolution and we start from a position of significant strength. We have a thriving research and science base and are home to a wide range of innovative sectors, from advanced manufacturing and life sciences, to fintech and creative industries.

“The Industrial Strategy is an unashamedly ambitious vision for the future of our country, laying out how we tackle our productivity challenge, earn our way in the future, and improve living standards across the country.”

Expert Opinion

“Although many business groups have welcomed this white paper, there will be many organisations that’ll think that the announcements aren’t radical enough. Many businesses have been holding back on investment for a number of years and it will be interesting to see whether the government’s proposals will be sufficient to encourage this to change in the short and medium-term.

“The government has rightly identified a number of challenges and opportunities for the future, but clearly there is a great deal that much needs to be achieved if we are all going to deliver on the ambition of making the UK the most innovative nation by 2030. The prize though is considerable. If we get it right, we will tackle the UK’s long-standing productivity puzzle and ensure that we have the right economic foundations for many years to come.”
Victoria Brackett - Group Chief Commercial Officer