Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the potential effect of investment in innovation and skills on the regeneration of local economies.

Innovation and skills will play a vital role in the regeneration of local economies. However, they are only part of the picture in the regeneration of local economies. We are considering how we can support the UK create good jobs, tackle weak growth and productivity, level-up our regions to deliver a UK economy which is stronger, cleaner, more sustainable and more resilient.

As we look to build back better, it is crucial that we listen to what business is telling us about what they need and how Government should approach recovery and renewal. Last week, my Rt. Hon. Friend the Secretary of State led a series of roundtables, bringing together businesses, business representative groups and leading academics to consider the measures needed to support the UK’s economic recovery from Covid-19. The insight gathered through these roundtables will help identify ways in which Government can work together with business and other stakeholders to support a green and resilient recovery, and ensure the UK is at the forefront of new and emerging industries.

Innovation and Research & Development (R&D) play a crucial role in supporting local economies to recover and renew. The Government is committed to increasing R&D investment across the economy to 2.4% of GDP by 2027, building on existing strengths in areas with high potential for future growth, and providing innovation-led support in less R&D intensive regions to support their continued growth. The Department for Business, Energy and Industrial Strategy (BEIS), working together with the Ministry for Housing, Communities and Local Government (MHCLG), is engaging with local partners to assess the current impacts being felt in local economies to build a strong understanding of how investment in research and innovation will contribute to the regeneration of local economies going forward through the development of local recovery plans and an ambitious R&D Place Strategy.

Matching high quality skills provision with local economic need is crucial to improving regional productivity and contributing to the regeneration of local economies. The Government takes a multi-faceted approach to addressing this challenge.

In response to the impact of Covid-19 on national and local economies, the Department for Education (DfE) is developing proposals that target skills support at those who will be hardest hit. Any new support will flex in response to local demand and will assist places in their economic recovery.

DfE has also established Skills Advisory Panels (SAPs) working with Local Enterprise Partnerships (LEPs) and Mayoral Combined Authorities (MCAs). These have helped places to identify local skills priorities, based on analysis of the local area, and agree how these will be met through local education and training provision. The Secretary of State for Business, Energy and Industrial Strategy is also working closely with my Rt. Hon. Friend the Secretary of State for Education on the developing skills proposals. Through this work Government is continuing to work with local areas to identify local labour market priorities and enable an effective response.