Industrial Strategy White Paper

Industrial Strategy White Paper
Title	Industrial Strategy White Paper
Jurisdiction	United Kingdom
Date	2017
Minister	Secretary of State for Business, Energy and Industrial Strategy
Related	National Industrial Strategy, Sector Deals, Research and Development Roadmap

Industrial Strategy White Paper The Industrial Strategy White Paper set out a national plan aimed at increasing productivity, investing in infrastructure, and boosting innovation across the United Kingdom through targeted interventions and long-term frameworks. It proposed measures spanning investment, skills, regional growth, science, and trade, building on precedents and debates involving major institutions and historical policy shifts. The document shaped subsequent initiatives and provoked responses from political parties, industry bodies, trade unions, academic centers, and international partners.

Background and Objectives

The White Paper emerged amid debates involving the 2016 United Kingdom European Union membership referendum, the 2015 United Kingdom general election, and economic analyses by the Office for Budget Responsibility, Bank of England, International Monetary Fund, Organisation for Economic Co-operation and Development, and World Bank. It referenced industrial policy debates traced to the Industrial Revolution, the Second World War, and postwar reconstructions like the Marshall Plan, and drew comparisons with strategies in United States, Germany, Japan, France, and South Korea. Key actors included the Prime Minister of the United Kingdom (2016–2019), the Chancellor of the Exchequer (2016–2019), the Confederation of British Industry, the Institute for Fiscal Studies, the Royal Society, and the British Chambers of Commerce. The objectives echoed aims from the 2010s energy policy of the United Kingdom, the Higher Education and Research Act 2017, and commitments to international frameworks such as the Paris Agreement.

Policy Proposals and Key Measures

The White Paper proposed UK-wide initiatives and devolved arrangements with entities like the Scottish Government, Welsh Government, and Northern Ireland Executive. Major measures included a commitment to increase public research and development funding, establishment of sectoral sector deals for industries such as automotive firms including Jaguar Land Rover, aerospace actors like Rolls-Royce Limited, pharmaceutical companies including GlaxoSmithKline, and technology firms comparable to ARM Holdings. It proposed investment in infrastructure projects akin to Crossrail, energy strategies referencing Hinkley Point C nuclear power station, transport links comparable to HS2, and support for financial centers like the City of London. The White Paper advocated reforms to skills policy with bodies such as UK Commission for Employment and Skills and links to institutions like University of Cambridge, University of Oxford, Imperial College London, University College London, and The Alan Turing Institute.

Economic Rationale and Analysis

Analytical foundations drew on research by the National Institute of Economic and Social Research, the Institute for Fiscal Studies, and academic centers at London School of Economics, University of Manchester, University of Warwick, University of Leeds, and University of Birmingham. The rationale referenced productivity puzzles discussed in reports by the Organisation for Economic Co-operation and Development and comparisons with industrial strategies in Germany, France, and Japan. It invoked historical precedent including Keynesian economics, debates from the 1973 oil crisis, and lessons from the Great Recession. Fiscal modelling took into account forecasts from the Office for National Statistics and scenarios considered by the Bank of England Monetary Policy Committee. Trade implications were assessed relative to arrangements like the World Trade Organization and bilateral ties such as with the United States–United Kingdom Special Relationship and trade relations involving the European Union.

Implementation and Governance

Implementation structures included a national Industrial Strategy Council, coordination with devolved administrations including the Scottish Parliament, Welsh Parliament, and the Northern Ireland Assembly, and partnerships with business organizations like the Confederation of British Industry and Federation of Small Businesses. Delivery relied on public bodies including UK Research and Innovation, the British Business Bank, the Highways England successor delivery models, and regulatory agencies like the Competition and Markets Authority. International cooperation engaged entities such as European Investment Bank-style financing, bilateral agencies exemplified by Department for International Trade (United Kingdom) collaborations, and multilateral forums including the G7 summit. Legal and procurement frameworks referenced statutes like the Public Contracts Regulations 2015 and oversight from the National Audit Office.

Reactions and Criticism

Responses spanned endorsements and critiques from political parties including the Conservative Party (UK), the Labour Party (UK), the Liberal Democrats (UK), and nationalist parties such as the Scottish National Party. Business groups like the Confederation of British Industry and Institute of Directors offered conditional support, while trade unions including the Trades Union Congress raised concerns about employment quality. Academics at institutions such as University of Oxford and think tanks like the Resolution Foundation, Policy Exchange, Institute for Public Policy Research, and Centre for Policy Studies provided analytic critiques. International commentators compared the approach to strategies in Germany and South Korea; litigants and campaigners referenced legal frameworks under the Equality Act 2010 and procurement challenges were scrutinized by the Competition and Markets Authority.

Impact and Outcomes

The White Paper influenced later policies including the National Industrial Strategy updates, the creation of sector deals in automotive, aerospace, and life sciences, and funding allocations via UK Research and Innovation. Projects and institutions affected included partnerships around Hinkley Point C nuclear power station, infrastructure investments reminiscent of HS2, and research initiatives at The Francis Crick Institute and Culham Centre for Fusion Energy. Measured outcomes—productivity, regional investment, and R&D intensity—were evaluated by bodies like the Office for National Statistics, National Audit Office, and international agencies including the Organisation for Economic Co-operation and Development. The legacy informed later policy responses to shocks such as the COVID-19 pandemic and energy security discussions linked to geopolitical events like the 2022 Russian invasion of Ukraine.

Category:United Kingdom public policy