Industrial Strategy

Lord Mountevans Excerpts

Thursday 1st February 2024 Lords Chamber

[Lord Mountevans (CB)]

My Lords, I thank the noble Lord, Lord Watson, and congratulate the noble Lord, Lord Rosenfield, on his excellent maiden speech.

I spoke in the debate on the Government’s industrial strategy White Paper in 2018. Sadly, the scope of the plan laid out then was not followed through. Since then, the Government have brought forward amended but less detailed strategies, in 2021 and 2023. There has been a lack of co-ordination and consistency in UK industrial policy. In my view, it would be immensely helpful to business if we could have a more comprehensive strategy—that is, a framework offering consistency. The strategy should set out a long-term vision for growth, skills and productivity, as well as increased competitiveness—and of course, innovation today is critical. Importantly, a long-term growth strategy needs to give investors confidence to make long-term decisions.

Noting priority sectors such as the life sciences, advanced manufacturing, the creative industries, digital and green is essential, but can we please not overlook the wider economy? Governments tend to be overly attracted to the obviously 21st-century sectors and do not pay enough attention to less eye-catching but vital sectors, for example financial and professional services and transport. The financial and professional services sector is one of the UK’s competitive strengths, supporting 2.5 million jobs and contributing £100 billion in taxes each year. London was recently ranked number one for the fourth successive year among leading international financial centres. A recent City and practitioner report recommended that a goal should be to anchor the UK as a leader in sustainable finance. It also called for a long-term strategy for a competitive financial and professional services sector to build support for

“the growth of potential areas of competitive advantage such as sustainable finance, and emerging technologies”.

UK-based financial and professional services play a critical role in the domestic and global green finance ecosystem. London ranked first in the latest Global Green Finance Index, published last October. Time does not permit me to comment on transport, but it is an obvious case for greening and the march to net zero. Look how the sector delivered during the pandemic and, indeed, at all times—although perhaps I should leave railways out of that.

Moving to my close, I would personally warn against too prescriptive an approach in the strategy. A lighter touch seems appropriate. Being practical has always been a core UK strength. In my view, there is a need for any party hoping to win the next election to get cracking on industrial strategy. Suggestions of a royal commission risk taking too long.

Finally, it is essential to simplify and speed up the planning process while protecting our precious countryside: brownfield sites, please, wherever possible.