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Industrial Strategy the Story So Far FORGING OUR FUTURE INDUSTRIAL STRATEGY THE STORY SO FAR 1 Industrial Strategy Forging Our Future “ Our challenge as a nation, and my determination as Prime Minister, is not just to lead the world in the fourth industrial revolution, but to ensure that every part of our country powers that success. That is what our modern Industrial Strategy is all about. Investing in science and research to keep us at the forefront of new technologies and the benefits they bring. Nurturing the talent of tomorrow — through more outstanding schools, world-leading universities and the technical skills that will drive our economy. And transforming the places where people live and work — the places where ideas and inspiration are born — by backing businesses and building infrastructure not just in London and the South East but across every part of our country.” Theresa May, Prime Minister 2 3 Industrial Strategy Forging Our Future Birmingham University is leading the ReLIB project to recycle Contents electric vehicle battery components FOREWORD 6 INTRODUCTION 8 INDUSTRIAL STRATEGY AT A GLANCE 10 Industrial Strategy — local to global 11 FOUNDATIONS Ideas 18 People 20 Infrastructure 22 Business Environment 24 Places 26 INDUSTRIAL STRATEGY AROUND THE UK 28 SECTOR DEALS 30 GRAND CHALLENGES AI and Data 40 Ageing Society 42 Future of Mobility 44 Clean Growth 46 REFERENCES 50 4 5 Industrial Strategy Forging Our Future Foreword One year after the publication of The UK needs to make the most of our Industrial Strategy, we have the benefits this can bring. This is already seen significant progress. why we set ourselves four Grand Challenges: Artificial Intelligence Over the past year there have been and Data, Clean Growth, the Future important achievements across the of Mobility and Ageing Society. five foundations of productivity set We have already announced four out in the strategy. We now have missions to focus attention on long- record levels of public investment term targets, from five extra year in research and development, of healthy life for all, to halving the matched by sustained growth in energy use of new buildings. private sector spending. We have the fastest wage growth in nearly The Industrial Strategy is more than a a decade and a record number set of policies and commitments. It is of people are now in work. We a new way of working for Government, have had major upgrades to our working across departments to build infrastructure, with the fastest growth long-term partnerships with business, in infrastructure spending in the G7 academia, and local leaders — from and big decisions taken for the nation mission-focused policy-making to our such as the expansion of Heathrow. newly-established Industrial Strategy And we are delivering the biggest Council. It is an ongoing priority, which shakeup to technical education and will adapt as delivery progresses retraining in a generation to make and our needs change. What will sure we have the skills we need. not change is its core objective: to build a Britain fit for the future. We have also struck six Sector Deals, long-term strategic partnerships The Industrial Strategy is designed between government and industry, to secure our success, looking in sectors from construction to beyond our departure from the creative industries. These deals European Union to the future of are not only about attracting the UK and the global economy. investment and growth: they are ensuring we have the skilled, diverse workforce we need for the future. Rt Hon Greg Clark MP Secretary of State for Business, As our Industrial Strategy Energy and Industrial Strategy acknowledges, the way we live continues to be transformed by the technological advances of what is a fourth industrial revolution. 6 7 Industrial Strategy Forging Our Future `` Places — how we put our `` Artificial Intelligence and Data: national strategy on a local We will put the UK at the forefront Introduction level, creating prosperous of the AI and data revolution. communities across the UK. Our first mission is to use data, BUILDING LONG-TERM artificial intelligence and innovation Our modern Industrial STRATEGIC PARTNERSHIPS to transform the prevention, early diagnosis and treatment Strategy is a long-term Partnership between the government of chronic diseases by 2030. plan to boost productivity and industry on sector-specific issues and earning power for can create significant opportunities `` Clean Growth: We will maximise the people throughout the to boost productivity, employment, advantages for UK industry from United Kingdom. innovation and skills. Sector Deals the global shift to clean growth. call for sectors to set out proposals Our first mission is to at least halve the to transform productivity in their energy use of new buildings by 2030. area. The government then works `` Future of Mobility: We will become with leadership in the sector to a world leader in the way people, ensure that the proposal is robust goods and services move. and transformative, and deals are announced as and when agreements Our first mission is to put the UK are reached on an ongoing basis. at the forefront of the design and manufacturing of zero emission “ The Industrial Strategy is one of We are working with key UK industries vehicles, with all new cars and vans the most critical strands of work STRENGTHENING to agree Sector Deals, with six effectively zero emission by 2040. taking place across government. THE FOUNDATIONS already published: Life Sciences, It has the potential to raise living We are strengthening the five Automotive, Creative Industries, AI, `` Ageing Society: We will harness the standards across the whole of foundations of productivity. Nuclear and Construction, and three power of innovation to help meet the UK, boost people’s earning These are the main drivers more due shortly: Aerospace, Rail the needs of an ageing society. powers and put the UK at the of a successful economy. and Food & Drink Manufacturing. Our first mission is to ensure people forefront of future industries `` Ideas — how we make the UK the TAKING ON GRAND can enjoy at least five extra healthy internationally. One year from world’s most innovative economy. CHALLENGES independent years of life by 2035, while narrowing the gap between the its original publication, I look People — how we build a successful, `` We are positioning the UK at the experience of the richest and poorest. forward to working with the high-calibre workforce, now and forefront of tackling four global Grand members of the newly-formed in the future, ensuring good jobs Challenges where we can build on our Each Grand Challenge will have Industrial Strategy Council and greater earning power for all. strengths and lead the industries of a Business Champion with relevant industry experience, to provide an independent Business Environment — how we the future. We have picked specific `` and missions which are goals evaluation of the impact the secure the UK’s position as the best ‘missions’ within the Grand Challenges we can all work towards. Industrial Strategy is having place to start and grow a business. — addressing clearly defined problems up and down the country.” by setting an inspiring and stretching As we leave the European Union we Infrastructure — how we drive `` goal to focus the efforts of industry, are looking to global opportunities, Andy Haldane, Chief Economist improvement to the country’s researchers and government. with policies to sustain and enhance at the Bank of England and Chair connections, delivering a major our competitiveness and productivity. of the Industrial Strategy Council upgrade to the UK’s infrastructure. 8 9 IndustrialIndustrial Strategy Strategy Forging Forging Our Our Future Future £2.3bn of The Industrial private investment and 1,600 new jobs were Strategy is working announced as part of for the UK economy London Tech Week £45bn 78,000 already committed smaller UK businesses across the UK through boosted by the British the Industrial Strategy Business Bank 5% 76,000 increase in private sector new jobs created expenditure on research by foreign direct and development1 investment2 £7bn #1 fastest growing record increase in public infrastructure investment spend on research of the seven largest advanced and development3 economies in the world4 10 11 Industrial Strategy Forging Our Future AI TECHNOLOGIES COULD ADD AN ADDITIONAL £630bn TO IN THE FIRST HALF OF MORE THAN 30 AUTOMOTIVE THE UK ECONOMY BY 20355 2018, 1 IN 5 ELECTRIC MANUFACTURERS BUILD VEHICLES SOLD IN EUROPE VEHICLES HERE IN THE UK9 8 We are backing research and WAS MADE IN THE UK development for data science OVER 1,100 BUSINESSES We are agreeing partnerships and AI. £300m has been START EVERY DAY IN BRITAIN We are committed to reducing with industry to boost allocated by the Engineering — ONE EVERY 75 SECONDS6 emissions, with £1.5bn productivity, employment, and Physical Sciences Research investment for ultra low innovation and skills. The Council to fund relevant projects emission vehicles by 2020 Automotive Sector Deal will boost We are helping small businesses the level of UK-made parts in UK- to grow. This year, the British built vehicles so that at least half Business Bank launched TH of their value is manufactured THE UK IS NOW RATED 4 IN four new programmes in this country by 2022 THE WORLD FOR INNOVATION, and is now supporting over OVERTAKING THE USA7 78,000 smaller businesses with more than £5.5bn We are driving research and innovation through the Industrial Strategy Challenge Fund. 602 different projects have already received £652m in funding support N, STUDIO 12 13 Industrial Strategy Forging Our Future THE £92bn CREATIVE 2017 WAS THE UK’S CLEANEST, INDUSTRIES SECTOR IS 13 GROWING AT TWICE THE GREENEST YEAR YET THE UK WILL BENEFIT FROM RATE OF THE ECONOMY11 £600bn INVESTMENT IN THOSE AGED 50+ NOW MAKE We are partnering with business INFRASTRUCTURE OVER UP NEARLY A THIRD OF THE to maximise the opportunities 10 We are supporting cultural 12 THE NEXT 10 YEARS ENTIRE UK WORKFORCE from clean growth.
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