UK industrial policy to be examined by MPs

MPs on the cross-party Business and Trade Committee have today launched a work programme to examine the Government’s approach to industrial policy.

Covering a wide range of industries, the programme will result in a series of reports recommending ways in which the Government can maximise the UK’s advantages and ensure the future health of the UK economy.

The inquiry will consider the five growth sectors (advanced manufacturing, green industries, life science, creative industries and digital technologies) identified by the Chancellor of the Exchequer in this year’s Autumn Statement. Industrial policies focused on enhancing economic security and those geared towards the country’s 2050 net zero goal will also be prominent elements of the programme.

MPs are calling for evidence from experts and those working in industry before Monday 29 January. Responses can be submitted on the Committee’s inquiry page.

Committee Chair, Liam Byrne, said, “If we’re to boost Britain’s growth, we’re going to need to compete harder in a world re-shaped by Bidenomics, Beijing and Brussels.

“Yet not only does the race to net zero provide new opportunities for new industries and new jobs, so does the new imperative of strengthening our national economic security.

“Both our prosperity and our security now rest on burnishing a new relationship between government and business, and this ambitious new inquiry will help us test whether ministers have it right - and where change is needed.”     

Full terms of reference

The Business and Trade Committee is launching a programme of work to scrutinise the UK Government’s approach to industrial policy, which will examine how industrial policy can be used to build on the UK’s strengths and competitive advantages, enhance economic security and help the UK reach Net Zero by 2050.

• The UK’s strengths and competitive advantages. The inquiry will look at where UK industries have a competitive advantage and how best to support these sectors, including the five key growth sectors (advanced manufacturing, green industries, life sciences, creative industries and digital technology) identified by the Chancellor of Exchequer. The Committee will examine the extent to which the Government’s recent Advanced Manufacturing Planprovides an effective response to the global challenges faced by the UK’s advanced manufacturing sectors. 

• Net Zero: As part of this inquiry, the Committee will look at which sectors of the economy are crucial to the UK’s transition to Net Zero, including the green growth industries where the UK has a competitive advantage internationally and how effectively the Government is supporting strategic industries to decarbonise. The Committee will also explore:
• • where it is desirable for the UK to cooperate internationally to achieve Net Zero industrial policy objectives.
  • the progress the Government has made towards securing a resilient supply critical minerals for the UK’s transition to Net Zero, since the Critical Minerals Strategy was published in July 2022.
  • the extent to which the growth of green industries and the decarbonisation of industrial sectors will create new green jobs and an equitable transition to Net Zero.

• Economic security: The inquiry will examine the role of industrial policy in strengthening the UK’s economic security, including:
• • how efforts to bolster economic security should be balanced with other competing objectives.
  • which industries are critical to the UK’s economic security, along with the key vulnerabilities related to these sectors.
  • the UK’s approach to de-risking industries that are of strategic importance.
  • where risks to economic security can be mitigated by collaborating bilaterally or multilaterally with other countries and where there is a need to onshore industrial capabilities.

The Committee is also interested in the design, delivery and oversight of industrial policy in general from the design of financial support through to the institutional and governance arrangements used to oversee the implementation of industrial policy.

The Business and Trade Committee would welcome written evidence on its industrial policy inquiry by Monday 29 January 2024. Submissions do not need to cover the full remit of the inquiry. Please limit submissions to a maximum of 3000 words.