UK seeks to remove Brexit sting with industrial strategy

LONDON: The British government launched a new strategy for industry yesterday, aiming to intervene in key sectors to tackle weak productivity and bolster businesses to counter any new problems caused by Brexit.

Prime Minister Theresa May first flagged the plan in January, seven months after Britain voted to leave the EU, adopting a hands-on approach to business that had largely been abandoned by her predecessors from the time of Margaret Thatcher.

The government said yesterday that it had secured a major investment from global healthcare company MSD, known as Merck & Co in the United States, ahead of the publication of the strategy.

Life sciences is one of four sectors being targeted by the government, which will also focus on construction, artificial intelligence and the automotive industry.

Business Minister Greg Clark said Britain has some of the world’s best universities and research institutions, as well as leading companies in sectors ranging from advanced manufacturing to financial services, life sciences and creative industries.

“But any serious strategy should address the weaknesses that stop us achieving our potential, as well as our strengths, and this Industrial Strategy does that,” he said.

Last week Britain’s budget forecasters cut the country’s growth estimates for the next five years, largely because of reduced projections for productivity, the Achilles’ heel of the economy since the financial crisis.

Clark said the new industrial strategy would strengthen infrastructure and the business environment in an effort to improve productivity. – Reuters