Industrial Strategy

Baroness Blake of Leeds Excerpts

Thursday 1st February 2024 Lords Chamber

[Baroness Blake of Leeds (Lab)]

I add my congratulations to the noble Lord, Lord Rosenfield, on his maiden speech. I am grateful to my noble friend Lord Watson for securing this debate to allow discussion of this area, which is crucial for enabling future economic growth and prosperity across the UK.

The transition to net zero presents a great opportunity for the UK to realise its ambitions for economic growth, lower energy bills, energy security and jobs. A refreshed industrial strategy will be vital to keep investments on track, ensuring that the UK’s reputation as a global leader does not go further backwards and that essential investments flow into the UK and not just to our global competitors. Businesses are telling us that they need certainty, consistency and clarity as we go forward to deliver our objectives. It is my firm belief that a clear policy framework is essential to enable businesses to work with the Government to deliver the step change we need. Growth in our economy will depend on creating and developing partnerships between the public and private sectors, the unions, our communities, and local and regional governance bodies; these relationships must underpin any strategy approach. They will need to deliver major infrastructure schemes, provide the skilled workforce as required and ensure the supply chains are in place to enable development.

To deliver net zero, the UK will need to become a world leader in producing electric cars, developing hydrogen, and developing and creating further capacity in renewables, as well as delivering our nuclear power potential—and we have had many discussions on the need to invest in the national grid to achieve those ambitions. Analysis shows that many of the clusters of high-value green industries are outside of London and the south-east, which offers opportunities to tackle stubborn interregional inequalities. Developing clean power offers the potential to create good, well-paid jobs across the country to overcome the current piecemeal and fragmented approach that has blighted progress, especially over recent months, with inconsistent government policy announcements bringing despair and irritation to many business leaders. Developing a joined-up, inclusive industrial strategy is essential in tackling the perceived gap between aspiration and delivery, frequently mentioned by the Climate Change Committee and others.

The brilliant Library briefing gives us many examples of how important this is. The last formal industrial strategy was set out in 2017. The need for laying out a new one is obvious and overdue, and I look forward to hearing the Minister’s views on the current situation.