The government has announced the formation of a new Industrial Strategy Advisory Council, which includes prominent figures such as Octopus founder Greg Jackson, Rolls-Royce chair Dame Anita Frew, and former Tory business secretary Greg Clark.
The council, which also features leading private sector individuals like Prudential chair Baroness Shriti Vadera and Legal and General’s Sir John Kingman, is tasked with guiding the development of the Prime Minister's eagerly anticipated industrial strategy, as reported by .
Comprising sixteen experts from diverse sectors including unions, academia, industry bodies, and business, the council is set to convene for its inaugural meeting on Tuesday at Lloyd’s of London. Chancellor Rachel Reeves and business secretary Jonathan Reynolds will be in attendance to discuss topics such as investment, innovation, and overcoming obstacles to growth with the panel.
"Driving long-term economic growth requires ambition and collaboration," stated Reeves. "With the Industrial Strategy Advisory Council, we’re bringing together the brightest minds to inform our industrial strategy and deliver growth that will improve living standards and that can be felt across every corner of the º£½ÇÊÓƵ."
The unveiling of Labour's industrial strategy signifies the first time in over three years that the º£½ÇÊÓƵ has seen a top-down, government-led approach to industry. Boris Johnson's Conservative government chose to abandon Theresa May's previous strategy, a contentious move made by then-Chancellor Rishi Sunak.
The council's announcement, set to be chaired by Microsoft’s president of enterprise and industry Clare Barclay, follows the blueprint for the strategy published by Reeves and Reynolds in October, highlighting the sectors expected to be prioritised. In a Green Paper titled Invest 2035, Labour pinpointed advanced manufacturing, clean energy, financial services and defence, among other key industries, as its eight "growth-driving sectors."
The strategy will lay out how the government plans to nurture and support these sectors, using initiatives like the emerging national wealth fund. The paper argued that economic shocks such as climate change, the "digital transformation" and Covid have created a "strong case for government to more actively direct the structure of the economy".
It further stated that its primary goals would be to rebuild Britain, support jobs, unlock investment and enhance living standards.
The strategy, however, has been met with scepticism by proponents of free market policy. Sam Bidwell, director of the Adam Smith Institute’s Next Generation Centre, expressed his criticism to City AM: "The º£½ÇÊÓƵ has a long history of failed industrial strategies, which are usually more about politics than sustainable industrial growth."
He added, "If we want to get our industrial businesses growing again, we need to get the basics right – that means planning reform, lighter regulations and a new pro-growth energy policy."
The Industrial Strategy Council will be supported by Nancy Rothwell as its deputy chair; she recently served as vice chancellor at the University of Manchester.
Joining her are notable industry figures such as Kate Bell from the Trades Union Congress, Professor Dame Diane Coyle of University of Cambridge, Tunde Olanrewaju of McKinsey º£½ÇÊÓƵ, Henrik L. Pederen of Associated British Ports, and Skills England's interim chair, Richard Pennycock.
Shadow Secretary Jonathan Reynolds highlighted the importance of the Council, stating: "Whether it is investment into new film studios, cutting-edge technologies, or green energy, the expertise and work of the Industrial Strategy Advisory Council will be key to giving investors the solid foundation on which to build, helping to support local skilled jobs and raising living standards in communities across the º£½ÇÊÓƵ."
