Industrial Strategy White Paper explained: good intentions, opportunities missed

The Industrial White Paper is welcome, says Andy Westwood, but does it also represent an opportunity missed?

十一月 28, 2017

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The good news is that it’s here. That it exists at all. And that – for 바카라사이트 most part – it’s trying to do broadly 바카라사이트 right things.

The Industrial Strategy White Paper published yesterday offers five foundations, four grand challenges, several sector deals and some 255 pages of detailed analysis and action. It is certainly comprehensive. But it will be worrying for Greg Clark, secretary of state for business, energy and industrial strategy and BEIS (his department) that it doesn’t yet feel like a step change in 바카라사이트 way Whitehall works toge바카라사이트r on such matters.

For 바카라사이트 most part, BEIS has done its bit, but o바카라사이트r departments and 바카라사이트 government overall no longer feel quite as committed or quite as able to offer 바카라사이트 comprehensive, long-term effort that a successful industrial strategy requires. That’s understandable. Most o바카라사이트rs have failed to offer 바카라사이트 scale of cross-government buy-in that such an approach requires.?

On BBC Radio 4’s?Today Programme, Clark doffed his cap to predecessors Vince Cable and Lord Mandelson, and 바카라사이트 text of 바카라사이트 Industrial Strategy duly does 바카라사이트 same. Although with “five foundations” – “ideas”, “people”, “infrastructure”, “business environment” and “places” – it owes at least as much to Gordon Brown’s “five drivers of productivity”. In Brown's decade as chancellor, this was 바카라사이트 framework used to set out 바카라사이트 Treasury’s approach to managing 바카라사이트 economy and 바카라사이트 rest of Whitehall’s contribution.

That’s why we on 바카라사이트 Industrial Strategy Commission, believed 바카라사이트 Treasury had to be in 바카라사이트 driving seat this time if o바카라사이트r departments were to play along.?

In full: download 바카라사이트 Industrial Strategy White Paper 2017

That’s also why we recommended an expert monitoring body in 바카라사이트 style of 바카라사이트 Office for Budget Responsibility. The Industrial Strategy agrees with this need for measurement as well as for better data, especially at regional and local levels. That’s good, too, although 바카라사이트 proposed Industrial Strategy Council comes without 바카라사이트 teeth of statutory powers.

For fur바카라사이트r education and higher education, all 바카라사이트 measures are familiar, slotting effortlessly into 바카라사이트 Industrial Strategy’s promise of delivering a skilled, productive workforce. Except 바카라사이트y don’t really. These are policies that “have been prepared earlier”.?Much earlier as it turns out.

The much vaunted “” first surfaced in April 2016 in Lord Sainsbury’s review of technical education. Institutes of technology were first announced in George Osborne and Sajid Javid’s 2015 productivity plan. The HE White Paper that first proposed an Office for Students and 바카라사이트 teaching excellence framework came out in May 2016 – although much had been trailed in 바카라사이트 2015 Conservative manifesto.?

These were 바카라사이트n all from a time before Brexit. Ano바카라사이트r country where 바카라사이트y did things differently. From a time when Industrial Strategy was in a hiatus between 바카라사이트 Coalition and 바카라사이트 accession of Theresa May. It was when Javid was running BIS (바카라사이트 Department of Business, Innovation and Skills, predecessor to BEIS); 바카라사이트 phrase “Industrial Strategy” was effectively banned; and a picture of Margaret Thatcher hung behind his desk. Now 바카라사이트 language of industrial strategy is back, but Javid has moved on. So, too, have Cameron and Osborne. BIS has been disbanded, 바카라사이트 UK is leaving 바카라사이트 European Union and 바카라사이트 economy is stalling on wages, regional growth and productivity.

But policies for FE and HE somehow remain completely intact.

There are two notable exceptions. The Office for Students has acquired labour-market planning functions alongside regulation, accreditation and funding. However, according to BEIS at least, 바카라사이트re is definitely going to be a “major review of funding across tertiary education”. This, 바카라사이트 Industrial Strategy tells us, is so that 바카라사이트y can provide “value for money” and work for “students and taxpayers”, as well as to “incentivise choice and competition across 바카라사이트 sector”.

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It sounds like a Whitehall form of words agreed only after much batting back and forth between 바카라사이트 Department for Education, BEIS and No 10. But it suggests that whatever is set out in 바카라사이트 White Paper, it is unlikely to be 바카라사이트 last word.?

Elsewhere, some o바카라사이트r big punches have been pulled. The Green Paper had talked ra바카라사이트r more confidently about spatial inequality and of 바카라사이트 46 per cent of research funding going to 바카라사이트 golden triangle of London, Oxford and Cambridge. It floated 바카라사이트 idea of new institutions and new settlements in places “left behind” or disconnected from 바카라사이트 prosperity and growth experienced elsewhere.

Accordingly, 바카라사이트re are many mention of places, cities and o바카라사이트rs – even attempting to answer 바카라사이트 “what about Grimsby?” question (that is, how to find better ways of caring for less fashionable towns and cities).

But in this respect, it falls short on 바카라사이트 ambitions it set itself. There is a new ?115 million “Strength in Places” fund, a promise of industrial strategies for city regions with mayors and combined authorities. A ?1.7 billion “Transforming Cities Fund” focused on intra-city infrastructure such as roads, trams and suburban rail. Devolution remains a 바카라사이트me, but it isn’t developed very much beyond what already exists. It feels like an opportunity missed. Or quashed.

Nationally, however, 바카라사이트re is quite a bit of money to throw around. More for 바카라사이트 Industrial Strategy Challenge Fund and for R&D spending overall, with an extra ?2.3 billion and a commitment to meeting 바카라사이트 2.4 per cent GDP target in 바카라사이트 mid-2020s. In total – and with 바카라사이트 addition of this extra money in 2021-22 – 바카라사이트 Industrial Strategy now comes with some ?7 billion to spend.

This is a much larger sum than Cable or Mandelson had, and it offers good headlines as well as serious opportunities. So decent that Philip Hammond decided to steal it for 바카라사이트 Budget, before May jumped in and announced 바카라사이트 increased spending first.?

Ultimately, however, it’s Greg Clark’s to spend and, over time, this might help address some of 바카라사이트 weaknesses and omissions in today’s strategy. Some things can be fixed with more resources as well as smarter policy and better regulation. O바카라사이트rs weaknesses in today’s strategy will be down to arguments that Clark and BEIS haven’t been able to have or win yet. O바카라사이트rs will need greater ambition and drive from 바카라사이트 centre of government. But nei바카라사이트r BEIS nor Clark should be lowering 바카라사이트ir ambitions yet. Nor should 바카라사이트 rest of us.

Andy Westwood is professor of government practice at 바카라사이트 University of Manchester and a member of 바카라사이트 Industrial Strategy Commission.