The UK Industrial Strategy can’t wait
Published: 18 February, 2025
The recent announcement that the Government will delay the release of its comprehensive industrial strategy until June has caused mixed reactions from industry stakeholders and policymakers. This postponement, aligning the strategy’s publication with the upcoming spending review, aims to provide a cohesive framework for the UK’s economic future. In the interim, Labour plans to roll out specific sectoral strategies, notably in life sciences and advanced manufacturing, to maintain business confidence and address immediate industry concerns.
Industry leaders have expressed concerns that the absence of a detailed, long-term industrial strategy may deter significant investments. Stephen Phipson, Chief Executive of Make UK, highlighted only last year that major international manufacturers are withholding investments in the UK pending clearer policy direction. He emphasised the urgency, stating, “Industrial strategy is so urgent, we need this tomorrow.”
The delay also raises questions about regional development and infrastructure investment. Recent critiques have pointed out disparities in funding allocations, with significant investments favouring projects in the South, such as the £6bn Lower Thames Crossing, while essential northern infrastructure, like the Tyne Bridge restoration, faces funding shortfalls. This situation underscores the necessity for a balanced and timely industrial strategy that addresses regional inequalities and fosters equitable economic growth.
While the need for a well-considered and comprehensive strategy is paramount, the current economic climate—with potential recession risks and ongoing global uncertainties—demands prompt and decisive action. Delaying the strategy’s release may inadvertently prolong uncertainty, potentially hindering investment and innovation. Therefore, it is crucial for the government to balance thorough planning with the immediate need for clear policy direction, ensuring that the UK’s industrial sectors are equipped to navigate current challenges and seize emerging opportunities.
While the development of a robust industrial strategy necessitates careful deliberation, accelerating its release could provide the clarity and confidence required by businesses and investors. Such a move would not only address pressing economic concerns but also demonstrate a commitment to proactive leadership in shaping the UK’s industrial future.
