Science and Technology: Economy
Lord Mair Excerpts(1 month, 3 weeks ago)
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Lord Mair (CB)
My Lords, I too am grateful to the noble Viscount, Lord Stansgate, for introducing this important debate. Science and technology could not be more vital to the economy than at the present time. As an engineer, both in practice and at Cambridge University, I welcome the Government’s very recent Green Paper. Invest 2035: The UK’s Modern Industrial Strategy identifies eight key growth-driving sectors. Three of these are advanced manufacturing, clean energy and digital technologies. Engineering is at the heart of all three, driving innovation and economic growth. It also plays a key role in many aspects of other sectors, such as defence and the life sciences. Engineering is integral to achieving outcomes from science and technology. The resulting new products, services and enterprises generate jobs, boost the economy and benefit society.
Demands on engineers are greater than ever, with the world facing challenges and opportunities that depend on substantial engineering input. Chief among these are the climate emergency and the rapid progress in artificial intelligence and related digital technologies. At the heart of the Government’s agenda is making the UK a clean energy superpower, with zero-carbon electricity by 2030. This involves major investments in wind and solar power, carbon capture and storage, hydrogen and long-term energy storage. Nuclear power will also be essential, and small modular reactors—mentioned by the noble Viscount, Lord Stansgate—have considerable promise. To be successful, all these technologies will require increasing numbers of engineers and technicians.
However, the UK faces an acute engineering skills gap. The Royal Academy of Engineering’s National Engineering Policy Centre has laid out how to bridge this gap—by reversing the shortage of STEM teachers, increasing apprenticeships and promoting engineering as an attractive career choice in the application of science. We should take a leaf out of Germany’s book: 20% of its 25 year-olds have a higher technical qualification; in the UK, the present figure is only 4%. Further education colleges and their role in science and technology have been neglected for too long, so I welcome yesterday’s Budget announcement to increase the funding of further education by £300 million. The plans to reform the apprenticeship levy are also welcome. In addition to supporting our world-class universities, an enhanced future for apprentices, including degree apprenticeships, will be especially important if this country is truly to become a technological superpower.
Our world-class, research-intensive universities are undoubtedly national assets and are highly regarded globally. As well as their key roles in education, training and curiosity-driven research, their science and engineering departments are hugely important drivers of economic growth. But many universities are now in a precarious financial state. In the upcoming spending review, their R&D needs further investment and support from the Government so that they can continue to innovate, attract foreign investment and stimulate industries. “Invest, invest, invest” was the mantra of the Chancellor in her Budget speech. Enhanced support for science, technology and engineering in our universities and for university-business collaboration could not be a more important investment. It will be crucial for the successful delivery of the industrial strategy, for growth and for the economy.
King’s Speech (4th Day)
Lord Mair Excerpts(5 months ago)
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Lord Mair (CB)
My Lords, I join other noble Lords in congratulating the noble Lords, Lord Livermore and Lord Vallance of Balham, on their appointments as Ministers. I also congratulate the noble Lord, Lord Vallance, on his excellent and important maiden speech—and the noble Lord, Lord Petitgas, on his maiden speech. The noble Lord, Lord Vallance, is especially welcome as Minister for Science. His very considerable expertise in science and technology is warmly welcomed in this House. The vital importance of science and technology was emphasised in His Majesty’s gracious Speech in relation to the Government’s plans for sustainable economic growth.
The absence of an industrial strategy in recent years has undoubtedly been problematic for this country. The new industrial strategy to be introduced by the Government is therefore very welcome, as is the proposed industrial strategy council, to be established on a statutory footing. It is to be hoped that this will result in a stable pipeline to enable industry and the UK’s world-renowned science and engineering research base to deliver innovations and provide confidence for businesses to thrive.
It is also to be hoped that the proposed new industrial strategy has real meaning. Much has been said about industrial strategies over many decades. In 2018, during a debate in this House, the noble Lord, Lord Hennessy, noted that the then formal industrial strategy set out in 2017 had been at least the eighth government industrial strategy to be published since the Second World War. A few years later, that industrial strategy too was abandoned, and from 2021 the previous Government instead pursued various other plans for growth. The establishment by this new Government of an industrial strategy council on a statutory footing should ensure continuity of an industrial strategy. It is continuity above all that is needed.
This country has an outstanding science and technology research base. To harness it most effectively the UK requires a robust and consistent strategy for industry and for universities, scrapping short-term funding and aiming for long-term stability. This is what is crucially needed to ensure economic growth.
My final point relates to employment and skills. There is a huge need for engineering skills to deliver the green and digital economies, adapting to the new, fast-moving technologies. These include the all-important AI, as so well articulated by the noble Lord, Lord Vallance, in his excellent maiden speech. At the heart of the Government’s agenda is making Britain a clean energy superpower, with zero-carbon electricity by 2030. The Government’s clean power mission plans major investments in wind and solar power, carbon capture and storage, hydrogen and marine energy, decarbonising the electricity system and long-term energy storage. Nuclear power will also be essential. All these important and welcome technologies will be vital for economic growth. All the associated innovations and required new infrastructure—the driving forces for the industrial strategy—will require many more engineers and technicians to be employed.
Employers are constantly referring to the acute national shortage of engineering skills; this is limiting the success of an industrial strategy or of an infrastructure strategy. There is a substantial untapped resource of future engineers and engineering apprentices in our schools. We need to address this urgently and plug the skills gap. Only then can the much-needed economic growth be realised.
Further education colleges have been neglected for far too long. I welcome the Government’s plan to transform FE colleges into specialist technical excellence colleges, as well as reforming the rather unsatisfactory apprenticeship levy, ideally as soon as possible. In addition to supporting our world-class universities, an enhanced future for apprentices, including degree apprenticeships, will be especially important if this country is to become truly a technological superpower.
Overall, I am optimistic for the future. I wish the new Government every success in their plans to enhance the UK’s position as a leading industrial nation, these plans being vitally underpinned by science and engineering.