UK Modern Industrial Strategy

Baroness Young of Old Scone Excerpts

Monday 30th June 2025 Lords Chamber

[Lord Leong (Lab)]

I thank the noble Lord for that. I will mention the British Council’s Alumni UK to my noble friend—she is sitting on the Front Bench and I am sure she heard the noble Lord’s point. On coastal towns and rural areas, the industrial strategy covers everything. This industrial strategy is not place specific; it is based on sectors. For example, rural areas will benefit from it, with clean energy in Cornwall, advanced manufacturing and agritech in Lincolnshire, financial services in Norwich and east Norfolk, and life sciences in Coleraine. So we are right across the country. It is not rural or coastal; it applies right across the country based on the sector. For example, computer games are very much up in the north, so that covers some of the rural areas as well.

The Government believe strongly that rural and coastal areas offer significant potential for growth and are central to our economy. We are committed to improving the quality of life for people living and working in these areas. The Government have already committed £2.7 billion to support sustainable farming and nature’s recovery. This Government have also confirmed investment of over £1.9 billion over four years into broadband and 4G connectivity. It is shameful that we still cannot get wifi across every part of this country. We are doing something about that, and the Government are putting money into these sectors.

[Baroness Young of Old Scone (Lab)]

My Lords, I welcome the industrial strategy. It is absolutely about stability and a sense of direction, which is what British business and, indeed, international investors have been calling for. I will press the Minister on the task of increasing private investment funding. In 2000, 50% of UK pension funds were invested in the UK. That has reduced to single figures now. If the pension and other institutional investment funds do not act on the Mansion House agreement voluntarily, will the Government consider mandating that?

[Lord Leong (Lab)]

My noble friend makes an interesting observation. As I said, we are putting more money into the British Business Bank and are encouraging private funds into the sectors. We have to work with the private investment money in this country. So plans will be in place to attract private investment and, at the same time, we want to work jointly with private investment in some of our key sectors so that we can help to grow the economy, as my noble friend mentioned.