The Department for Business, Energy and Industrial Strategy is consulting until 17 April on a document setting out the government’s new collaborative approach to industrial strategy.
The Department for Business, Energy and Industrial Strategy is consulting until 17 April on a document setting out the government’s new collaborative approach to industrial strategy. The objective of the strategy is to improve living standards and economic growth by increasing productivity and driving growth across the UK.
The consultation document, Building our industrial strategy (see http://bit.ly/2iVIGyl), sets out 10 ‘pillars’ for this strategy:
invest in science, research and innovation, and do more to commercialise our science base;
develop skills, build a new system of technical education and boost skills in STEM (science, technology, engineering and maths), digital skills and numeracy;
upgrade infrastructure, including digital, energy, transport, water and flood defences, and better align central government infrastructure investment with local growth priorities;
support businesses to start and grow, ensure access to finance and management skills and enable companies to invest for the long term;
improve procurement, using strategic government procurement to drive innovation and enable the development of UK supply chains;
encourage trade and inward investment, using government policy to help boost productivity and growth;
deliver affordable energy and clean growth, keeping costs down for businesses while securing the economic benefits of the transition to a low carbon economy;
cultivate world-leading sectors and build on areas of competitive advantage, while helping new sectors to flourish;
drive growth across the whole country, creating a framework to build on the particular strengths of different places and address factors that hold places back; and
create the right institutions to bring together sectors and places, including educational institutions, trade associations or financial networks.
A key aspect will be the review of the tax environment for research and development, announced at the Autumn Statement. The document references studies showing a correlation between government investment and tax support for R&D, and the amount that private businesses invest. The document notes the government’s pledge to provide an additional £4.7bn of funding for R&D by 2020/21.
Another important element of the strategy involves the availability of long-term funding. The Treasury has published the terms of reference for its review of ‘patient capital’ for growing businesses, which will consider all aspects of the financial system affecting the provision of long-term finance to growing innovative firms. In particular, the review will:
consider the availability of long-term finance for growing innovative firms looking to scale up;
identify the long-term root causes affecting the availability of long-term finance for growing innovative firms, including any barriers that investors may face in providing long-term finance;
review international best practices to inform recommendations for the UK market;
consider the role of market practice and market norms in facilitating investment in long-term finance; and
assess what changes in government policy, if any, are needed to support the expansion of long-term capital for growing innovative firms.
The patient capital review will publish a consultation in spring 2017. See http://bit.ly/2jP6n91.
The Department for Business, Energy and Industrial Strategy is consulting until 17 April on a document setting out the government’s new collaborative approach to industrial strategy.
The Department for Business, Energy and Industrial Strategy is consulting until 17 April on a document setting out the government’s new collaborative approach to industrial strategy. The objective of the strategy is to improve living standards and economic growth by increasing productivity and driving growth across the UK.
The consultation document, Building our industrial strategy (see http://bit.ly/2iVIGyl), sets out 10 ‘pillars’ for this strategy:
invest in science, research and innovation, and do more to commercialise our science base;
develop skills, build a new system of technical education and boost skills in STEM (science, technology, engineering and maths), digital skills and numeracy;
upgrade infrastructure, including digital, energy, transport, water and flood defences, and better align central government infrastructure investment with local growth priorities;
support businesses to start and grow, ensure access to finance and management skills and enable companies to invest for the long term;
improve procurement, using strategic government procurement to drive innovation and enable the development of UK supply chains;
encourage trade and inward investment, using government policy to help boost productivity and growth;
deliver affordable energy and clean growth, keeping costs down for businesses while securing the economic benefits of the transition to a low carbon economy;
cultivate world-leading sectors and build on areas of competitive advantage, while helping new sectors to flourish;
drive growth across the whole country, creating a framework to build on the particular strengths of different places and address factors that hold places back; and
create the right institutions to bring together sectors and places, including educational institutions, trade associations or financial networks.
A key aspect will be the review of the tax environment for research and development, announced at the Autumn Statement. The document references studies showing a correlation between government investment and tax support for R&D, and the amount that private businesses invest. The document notes the government’s pledge to provide an additional £4.7bn of funding for R&D by 2020/21.
Another important element of the strategy involves the availability of long-term funding. The Treasury has published the terms of reference for its review of ‘patient capital’ for growing businesses, which will consider all aspects of the financial system affecting the provision of long-term finance to growing innovative firms. In particular, the review will:
consider the availability of long-term finance for growing innovative firms looking to scale up;
identify the long-term root causes affecting the availability of long-term finance for growing innovative firms, including any barriers that investors may face in providing long-term finance;
review international best practices to inform recommendations for the UK market;
consider the role of market practice and market norms in facilitating investment in long-term finance; and
assess what changes in government policy, if any, are needed to support the expansion of long-term capital for growing innovative firms.
The patient capital review will publish a consultation in spring 2017. See http://bit.ly/2jP6n91.
