May's '10 pillars' industrial strategy signals active role for government
Theresa May has revealed the 10 pillars of her industrial strategy for the UK economy, ahead of a trip to Washington to meet new US President Donald Trump at the end of the week.
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Having clarified her position on the government's Brexit strategy last week, the mid-point of a key fortnight for the Prime Minister saw her set out a green paper that aims to boost productivity, link in with the Chancellor's plans to increase spending on infrastructure and generally see the government play a more active role in boosting business.
At her first regional cabinet meeting, May published the public consultation paper that outlined the intention to increase spending on broadband, transport and energy networks as well as ramp up government support for the high-growth sectors of life sciences, green vehicles, industrial digitalisation, creative industries and nuclear via sector-specific deals with industries that make a good case for how state support will address their specific problems.
"Our economy has great strengths, but while many people, places and businesses are thriving, opportunities and growth are still spread unevenly across the country," the paper said.
The 10 pillars were: investing in science, research & innovation; developing skills; upgrading infrastructure; supporting businesses to start & grow; improving procurement; encouraging trade & inward investment; delivering affordable energy & clean growth; cultivating world-leading sectors; driving growth across the whole country; creating the right local institutions.
In a skills push, May will pour £170m into the building of new institutes of technology in every region, aiming for these 'new polytechnics' to be given similar parity of esteem with established universities.
The government is reported to be willing to deregulate, arrange trade deals or create new institutions to boost skills or research, May signalled, as the automotive and aerospace industries have done.
The CBI director-general Carolyn Fairbairn welcomed the government creating an opportunity for all sectors to get involved.
“A modern industrial strategy will be a landmark opportunity to build a successful, modern economy as the foundation for a prosperous, fairer and more inclusive society," she said.
“It must help fix the country’s productivity problems and remove the regional inequalities that have dogged our country for generations, having a positive impact on living standards, wages and the future opportunities of many people."
Professor Karel Williams, a political economy expert at Alliance Manchester Business School, said it was a "very traditional kind of industrial policy", focussed on high tech sectors of the future and seemingly ignoring the more mundane but larger part of British manufacturing.
He added: “As Greg Clarke, Secretary of State for Business, Energy and Industrial Strategy, admits, the announced strategy is a consultation and scoping exercise, rather than a policy. Skills are a priority, but just £170m of investment has been promised for technical education which, if we remember, is just half of the £350m we were promised would be saved by Brexit every week.”
Trump meeting
On Friday, the PM will become the first overseas leader to meet Trump, with the pair expected to discuss a new trade deal between the UK and US that cuts or even drop tariffs and makes it easier for workers to move between the two countries.
May told the BBC she would discuss the countries' future trade relations, the importance of the North Atlantic Treaty Organization (NATO) and the Syrian conflict.
"What I think is important is that when I sit down, I will talk about how I can build on this special relationship. He has already said to me that he wants to see a very strong relationship between the US and the UK in the future," she said.
The Telegraph cited sources who believe any agreement on tariffs would give May sizeable leverage in her negotiations with Brussels and allow her to demand that EU leaders give Britain a good deal.
Other rumours for the talks include a new 'passporting' systems for banks post-Brexit.
As part of a broader charm offensive, the Queen is likely to extend an invitation to Trump for a state visit this summer, with May saying she would “look forward to welcoming president Trump some time this year if that is possible”.