UK Edition
May must deliver on new industrial strategy, insist manufacturers
Britain must quickly devise and implement a long-term, comprehensive industrial strategy to ensure the country’s economic future in the wake of Brexit, according to the UK’s manufacturers.
EEF, the trade body which represents Britain’s engineering and manufacturing businesses, has warned that “complacency is not an option” after wide-ranging research into the concerns of its members.
The study discovered that 76pc of manufacturers are actively trying to grow and 71pc of them have a three to five-year plan on how to achieve this.
However, with the uncertainty caused by Brexit, they want government to formulate an industrial strategy to back their plans. The call has public support, according to EEF’s research, which found 90pc of adults agree that the UK needs a solid industrial strategy, and 86pc of them want government to promote a stronger manufacturing base in Britain.
Industrial strategy has been a watchword of Theresa May since coming to power in late July, referencing the need for one in her first speech as Prime Minister.
She cemented the plan by including the phrase in the title of the enlarged Department for Business, Energy and Industrial Strategy, of which Greg Clark is Secretary of State.
Since then the Business committee in the Commons has begun an inquiry on the subject, with a consultation with big business already under way.
Previous attempts to back specific industries have been haphazard and while they have delivered notable success – such as the aerospace and automotive sectors – they have failed to achieve much impact in others.
Lee Hopley, chief economist at EEF, said: “The UK has tried industrial strategy before but the results have not been great. We need a comprehensive strategy that pushes right down through the supply chain and that cuts across sectors.”
She added that it also needs to have specific targets so “we know what success looks like”.
EEF said Europe’s “Horizon 2020” strategy is a good model to copy, which uses academic research to identify areas to focus on. It also works to a seven-year time frame which means it extends across political terms, meaning it is less likely to be affected by changes in political leadership.
The system also reviews what has been successful, allowing the approach to be updated to reflect what has worked or failed.
Ms Hopley added: “At the moment in the UK, priorities are fought over every three years in spending reviews. A strategy which cuts across parliamentary terms would get stronger buy-in from politicians and when they see its successes, backing for it is only likely to grow.”
EEF also wants to see the government departments taking a coherent view towards the strategy. At the moment the organisation warns that decisions made by one department can be undermined by how another acts.
“We cannot just keep repeating the mistakes of the past,” Ms Hopley said. “We have to take a more joined up approach otherwise we will be doing the same thing and expecting different results.”