The government has published a green paper that sets out its vision for a modern industrial strategy – a credible, 10-year plan to deliver the certainty and stability businesses need to invest in the high-growth sectors that will drive our growth mission. It is seeking views on how challenges in these areas might be addressed.
The UK government’s newly proposed industrial strategy lays out an ambitious, long-term vision for driving growth and revitalising deprived regions. With a proactive approach to navigating rapid global economic shifts, the plan seeks to reshape markets and establish a stable foundation for businesses to thrive nationwide. Far from a mere response to economic challenges, this strategy represents a carefully crafted effort to position Britain as a world leader in key industries, generating high-quality jobs and boosting productivity.
The path to success: a pro-business culture
But will this strategy succeed where previous initiatives have fallen short? This new strategy is a well-calibrated attempt to propel Britain forward as a world leader in key industries, creating high-quality jobs and boosting productivity.
The 10-year plan of action, framed around Britain’s unique strengths, is scheduled to provide a stable environment that attracts investment in high-growth sectors. Establishing a statutory Industrial Strategy Council is expected to ensure policy consistency – an essential element that businesses have long been asking for. This council will oversee the implementation of a comprehensive policy addressing skills, R&D, international recruitment, energy costs, infrastructure, and regulatory frameworks, all of which are vital to encouraging investment and stimulating growth.
This ambitious approach reflects a pro-business ethos, encouraging businesses to plan confidently for the future. The strategy prioritises sectors with high productivity and output potential, including manufacturing and services, while pushing the UK to the forefront in new industries. Its commitment to fostering high-quality, well-paid jobs aligns well with its mission of creating a robust, resilient economy fit for the 21st century.
Regional challenges and oversight
However, as progressive as this plan appears, there is an undeniable need for regional oversight to ensure these aspirations translate into meaningful outcomes across the UK’s varied economic landscape. For decades, decisions from Westminster have failed to meet regional needs effectively, resulting in persistent economic imbalances between the South and other parts of the country, particularly the North. Without a regionalised approach, the potential of this industrial strategy to deliver widespread growth will remain compromised. The report can be read here.
The case for regional governance in industrial strategy
History tells us that centrally managed policies often fail to resonate in regions where economic structures, challenges, and opportunities differ from those in London and the South-East. Localised governance – via devolved governments – is better suited to understanding and meeting specific economic needs. Yorkshire, for example, has long suffered from underinvestment in infrastructure and skills development, which hampers productivity and growth. A regional governance model would allow for the adaptation of national policies to fit local economic ecosystems, ensuring funds are concentrated on projects and sectors that best serve each area.
Tailoring the strategy to regional needs
By empowering regions to implement the industrial strategy, we can tailor actions to address unique regional challenges and opportunities. Local governments have a deep understanding of the challenges in their areas, from infrastructure gaps to talent shortages, making them well-suited to support growth in ways that build on regional strengths and address specific needs.
Such a model aligns with the government’s focus on stability and long-term growth. A regionalised approach to delivering industrial strategy ensures that the mission for growth remains grounded and achievable. The statutory Industrial Strategy Council could work alongside regional governments, setting broad objectives while allowing regions to implement initiatives that reflect local priorities. This cooperative approach would ensure that every part of the UK has an active stake in the national growth mission, making the country more resilient and competitive.
A future fit for all – no region left behind
Britain has a diverse economic landscape and a one-size-fits-all policy will not yield optimal results. By delivering this ambitious industrial strategy through a regionalised framework, the government can realise its vision of a high-growth, high-productivity, and high-wage economy nationwide. Empowering regions to tailor initiatives and allocate funding based on local needs will strengthen regional economies and, in turn, fortify the national economy as a whole.
For this strategy to succeed, Westminster must provide a framework for regional autonomy in economic decision-making. We need a Britain where every region has the authority and resources to act on local priorities within the national industrial strategy. Only by shifting from centralised control to a model of regional empowerment can Britain’s new industrial strategy genuinely unlock growth across the country, ensuring that no region is left behind.
Learning from past regional development efforts
The UK has attempted various regional development initiatives over many decades, some led by the national government and others involving regional bodies, with mixed results. Here are a few significant examples and their outcomes:
Regional Development Agencies (RDAs) (1999–2012)
RDAs were established by the last Labour government to drive regional economic growth and reduce disparities. Each RDA had the authority to focus on investment, skills, employment, and sustainable development in its region. RDAs achieved minor successes but were criticised for being bureaucratic with no local accountability. The government dissolved RDAs in 2012, arguing they were ineffective and too costly.
Local Enterprise Partnerships (LEPs) (2011–present)
LEPs replaced RDAs. They were partnerships between local authorities and businesses, intended to stimulate regional economic growth. LEPs were smaller than the RDAs they replaced, were more locally focused, and intended to be more flexible, and did have some measure of success. Some succeeded in supporting local businesses and attracting investment, while others have struggled due to inconsistent funding. It has been argued that LEPs lacked the resources and authority to drive substantial regional growth.
The Northern Powerhouse (2014–present)
The Northern Powerhouse initiative was launched in 2014 by George Osborne. It was intended to reduce economic disparities between the North and South by investing in transport, innovation, and skills across northern England.
The initiative initially brought welcome attention to the issue of regional inequalities, raising hopes for meaningful investment and growth in the North. However, the results have been underwhelming. According to Andy Burnham, the Greater Manchester mayor, rail services in northern England have worsened in the decade since the Northern Powerhouse commenced, highlighting the continued neglect of transport in the region.
The initiative has faced criticism for insufficient funding and failing to deliver substantial, transformative outcomes. Cancelling the HS2 leg to Manchester has been another setback for northern aspirations. Initially promoted as a project to boost the North, HS2 has primarily directed its focus and funding toward London and the South, deepening rather than bridging the economic divide.
City deals (2011–present)
City deals are agreements between the government and individual cities to give the cities greater control of infrastructure, housing, and skills. These deals aim to support economic growth by tailoring solutions to each city. Some city deals, such as Greater Manchester’s, have shown positive results. However, smaller cities – or those without decisive leadership – have seen less impact, and the approach has led to uneven benefits across the regions.
Devolution deals (2015–present)
Devolution deals have granted certain regions more control over their budgets and local services and have had some success. However, the deals are limited to a few areas and do not address the structural funding disparities that hinder other parts of the country. The deals have faced criticism for creating a patchwork of regional powers without a unified framework.
Lessons from previous initiatives
Previous initiatives encountered challenges, including limited funding and inconsistent implementation due to the absence of regional control. While some areas have made progress, they have failed to adequately address regional inequalities. The lessons are clear: a fragmented approach with individual mayors and numerous councils holding varied powers risks repeating the same mistakes, resulting in inconsistent policies, diluted resources, and competing local agendas that hinder meaningful progress.
The need for cohesive regional governance
A unified regional governance structure is essential to realise the full potential of the UK’s new industrial strategy. Consistency and cohesion are critical – regional bodies with the authority to set and implement unified policies can collaborate across boundaries, especially on large-scale infrastructure and economic initiatives. A model concentrated at the regional level would also allow for efficiency and scale, directing resources for impactful projects in transport, digital infrastructure, and energy.
Strategic focus and accountability
Such a structure would bring a sharper focus on strategic priorities and ensure accountability, with regional leaders responsible for delivering growth targets. A consolidated regional authority would enhance negotiating power with Westminster, enabling regions to advocate more effectively for the resources and autonomy needed to drive regional growth.
A transformative path forward
In summary, establishing cohesive regional governance through regional parliaments would provide the authority, resources, and consistency needed to make the government’s industrial strategy across the UK genuinely transformative. This approach would ensure that no region is overlooked in the pursuit of balanced economic growth.
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