LEPs the big winner as government unveils Industrial Strategy
The Business Secretary Greg Clark’s long-awaited Industrial Strategy – which sets out a long term plan to boost the productivity and earning power of people and businesses – has been welcomed by local business leaders.
The Strategy, aligned to the Midlands Engine Strategy published in March, sets out the government’s plans to increase economic growth and improve quality of life across the whole of the Midlands.
Together, the Industrial Strategy and last week’s Budget contain a number of announcements that will affect the region, including:
· West Midlands Combined Authority will benefit from £250m from a new £1.7bn Transforming Cities Fund driving productivity through improving connectivity
· Skills in the Midlands will be enhanced through greater investment in Further Education through T Levels
· Government has set out a plan to improve digital connectivity for students and teachers in the East Midlands schools. They will benefit from “significantly improved” internet connectivity through a pilot to connect more public buildings with full-fibre broadband
· Working in partnership with local areas, the government will help develop local industrial strategies, tailoring national approaches to tackle the specific barriers local areas face, whilst empowering them to do more. From 2019, local industrial strategies will identify local strengths, future opportunities and the action needed boost productivity, earning power and competitiveness
Business Secretary Greg Clark said: “The Midlands is home to some of our most iconic and productive businesses, including Jaguar Land Rover and Rolls Royce, as well as world class supply chain companies and some of our best innovation clusters in advanced manufacturing, life sciences, cyber security, agri-food and many others.
“Through our modern Industrial Strategy we will work with the Mayor and the Midlands Engine Partnership to build on these extraordinary local strengths, creating new opportunities and jobs.
“The Midlands is vital to the UK economy and this strategy, through investment in infrastructure, skills, 5G connectivity and clean growth technologies, we will build an economy fit for the future.”
There was a generally positive reaction from business leaders to the announcements.
Nick Pulley, chair of the Leicester and Leicestershire Enterprise Partnership (LLEP), said: “We are delighted that the Government remains firmly committed to Local Enterprise Partnerships (LEPs), and has confidence in our ability to set clearly defined activities and objectives for our area’s economic success.
“From next year, the Prime Minister will chair a biannual ‘Council of Local Enterprise Partnership Chairs’. This will provide an opportunity for LEP leaders to inform national policy decisions.”
Peter Richardson
Peter Richardson, chair of the D2N2 Local Enterprise Partnership, said: “It is good to see that many of the ambitions expressed in the Industrial Strategy reflect things our area is already doing and that the consultation has listened to calls from business, particularly around the need for more local control of economic strategy.
“As a strong economic area and wider region, there will be a major role for us to play in helping deliver on the aspirations set out in the Industrial Strategy.”
Carolyn Fairbairn, CBI director-general, said: “Nine in ten firms see a modern Industrial Strategy as vital to improving living standards in the face of Brexit uncertainty and a sombre economic outlook. This announcement shows the Government has its eye firmly on the horizon, not just the next few yards. We welcome the recognition that success will require urgent action in partnership with business. This is the route to raising living standards in every corner of the country.
“The hard work starts now. Today’s announcement must be the beginning of a strategic race, not a tactical sprint. And it needs to last. This is a time for consistency and determination, not perpetual change with the political winds. The creation of an independent council with teeth to monitor progress will help this.
“The CBI urges the Government to continue on this road, moving fast from strategy to action. Two important tests of success will be that all regions and nations have successful industrial strategies, and that it is supported and not harmed by Brexit. There must be no missed turns on the path to UK 2030”.
