News

21.08.17

Now more than ever we need long-term strategic economic management

Source: PSE Aug/Sept 2017

While the government still deliberates the feedback to its industrial strategy consultation, the independent Industrial Strategy Commission has identified a number of key foundational themes to make it a success. PSE’s David Stevenson reports.

As PSE went to press, we were still waiting for the government’s response to the feedback it received for its ‘Building our Industrial Strategy’ green paper consultation.

An interesting point that was made in the consultation was a pledge to work with local government to review how to bring more business expertise into the sector, “for example through the creation of a modern ‘Alderman’ type of role”, and working with Local Enterprise Partnership (LEPs) to review their role in delivering local growth, “examining how we can spread best practice and strengthen LEPs, including extending the support they receive from the What Works centre for Local Economic Growth”.

These will definitely be areas to keep an eye on when the government’s plan for a new strategy and white paper are released.

In his foreword to the green paper, Greg Clark, secretary of state for business, energy and industrial strategy, said: “In building an industrial strategy we aim to set out an approach which endures.

“The policies that the government pursues, the institutions it sustains and creates, and the decisions that it takes, should be, as far as possible, stable and predictable. In a world containing much uncertainty, public policy should aim to be a countervailing force for stability, not an additional source of unpredictability.”

This was also a point made recently by leading economist Dame Kate Barker, chair of the independent Industrial Strategy Commission, who stated that while it is welcome that political consensus exists for a new and broadly-based industrial strategy, it may prove fragile over the coming years.

“For this reason, our first and most important conclusion is that the UK needs a set of institutions which will ensure public and private sector bodies can plan on the basis of confidence in a shared long-term vision,” she said. “The business sector is also supportive of a long-term, clear and ambitious industrial strategy.”

During July, the commission, an independent inquiry into the development of a new, long-term industrial strategy, supported by the University of Manchester and the University of Sheffield, launched its ‘Laying the Foundations’ report.

The document, which sets out the emerging findings of the commission’s work before a final report is published in October, warned that a new strategy will only be a success if it is embedded throughout the public sector and secures buy-in from the private sector. It is also vital to have sound foundations and offer a positive vision for the future.

In its interim report, the commission identified seven themes that must be considered foundational, which the new strategy should be built upon: a long-term set of institutions to determine, implement and monitor a new strategy; recognition of the importance of place and the need to increase growth and productivity everywhere; a joined-up approach to science, research and innovation; a strong competition regime; an increased investment rate; a comprehensive effort to improve skills; and effective use of the state’s purchasing and regulating power.

It was also suggested that the new strategy should be informed by a positive vision for the country’s future, which can be achieved by reframing challenges the UK faces as strategic goals to be met. These goals, the commission stated, include decarbonisation of the energy economy, ensuring adequate investment in infrastructure, developing a sustainable health and social care system, and enabling growth in all parts of the country.

Dame Kate added that this summer is a critical moment for the UK economy. “The recent election has resulted in political fragility against a backdrop of growing economic concerns following the EU referendum,” she explained. “Now more than ever we need long-term strategic economic management to enable the UK to respond to current challenges and invest in our people, places and industries to achieve greater future prosperity.”

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

latest news

View all News

comment

Driving forward a healthier Scotland

10/11/2017Driving forward a healthier Scotland

Dundee City Council is leading the way in boosting electric vehicle (EV) up... more >
A smarter approach to digital transformation

10/11/2017A smarter approach to digital transformation

Catherine Bright, Smarter Digital Services (SDS) manager, explains how a pa... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

interviews

‘The HSCN is the realisation of industry best practice’

30/06/2017‘The HSCN is the realisation of industry best practice’

Keith Smith, public sector business development manager at Virgin Media Bus... more >

the raven's daily blog

Visual.ONS: How to compete with the big data aggregators

13/11/2017Visual.ONS: How to compete with the big data aggregators

Advertisement feature Christopher Gallagher, territory manager at SAS, explains how big data can be used by the public sector to find innovative solutions to common probl... more >
read more blog posts from 'the raven' >

public sector events

events calendar

back

November 2017

forward
mon tue wed thu fri sat sun
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3
4 5 6 7 8 9 10

featured articles

View all News