Industrial Strategy

Baroness Donaghy Excerpts

Thursday 1st February 2024 Lords Chamber

[Baroness Donaghy (Lab)]

I thank my noble friend Lord Watson for initiating this debate and look forward to the maiden speech by the noble Lord, Lord Rosenfield.

It is not that long ago that the Government had an industrial strategy. When the noble Lord, Lord Henley, was Minister at the Department for Business, Energy and Industrial Strategy, he referred to it more than 300 times, including Written Answers, between 2017 and 2019. Described as a modern industrial strategy, it covered the Good Work Plan, the environment, safeguarding the post office network, life sciences, productivity and skills training. In a major debate in January 2018, the noble Lord, Lord Henley, referred to contributions by

“the grandfather of industrial strategies”,

the noble Lord, Lord Heseltine, and

“the godfather of industrial strategies”,—[Official Report, 8/1/18; col. 105.]

my noble friend Lord Mandelson. He also referred to contributions by my noble friends Lord Eatwell and Lord Chandos. Perhaps they were slightly less optimistic about the Government’s White Paper and he thought their contributions were “Eeyoreish”—difficult to say—but it was clearly central to government strategy, so what happened?

Theresa May went to the Back Benches; the noble Lord, Lord Henley, went to the Back Benches; industrial strategy disappeared from the title of the government department. Andy Haldane, who had been appointed chair of the independent Industrial Strategy Council to oversee the Government’s industrial strategy, commented on its subsequent abolition and the closure of the industrial strategy directorate in the department, saying:

“In the UK, industrial strategy is dead”.


He was lukewarm about the substitute policy, the plan for growth.

Make UK, the body representing the manufacturing industry, has claimed that the lack of a formal strategy is damaging to the UK, regionally and internationally, and called for, as my noble friend Lord Watson said, a long-term national manufacturing plan similar to those in Germany, China and the US. This has been backed up by research from the CEPR and the OECD. Why is the UK the only major economy not to have an industrial strategy? Does the Minister agree with the CBI that “the clock is ticking” for the UK to publish an industrial strategy that can rival other markets in fast-growing green economy sectors?