May’s industrial strategy offers little fresh hope

Prime Minister’s plan for productivity requires a rethink because it lacks the detail required to look like anything other than a reheat

At a time when the country is crying out for clear direction and strong leadership to guide us through the uncharted territory of Brexit, Theresa May’s plan for the UK economy is just another disappointment.

As the Prime Minister’s industrial strategy was announced yesterday, a lot was said but little of it had any real substance, or at least, anything that added significantly to our understanding of where growth will be achieved.

Her plans include a £556 million boost for the “northern powerhouse”, an overhaul of technical education and £170m cash for a new emphasis on science, technology, engineering and innovation.

Anyone who finds that this all sounds familiar can be forgiven their cynicism. While some of the detail is new, the overall feeling is that there is not much in the strategy that we didn’t know already, other than the size of investment. In its current state, Building Our Industrial Strategy is not a game-changer for the economy.

Political opponents responded to the proposals by accusing Mrs May of reheating already-announced funding pledges. This tactic is a regular line of attack for an opposition party, but on this occasion, “reheat” sounds just about right.

If we can give the Prime Minister some credit, it’s for highlighting areas where investment is required if UK productivity is to be given a boost. However, that’s not what we expect of the government at Westminster. The man in the street could come up with the broad targets that have been identified; the trick is how to put effective policy into practice. We hear of development of skills... upgrading infrastructure... delivering affordable energy... supporting businesses to start and grow. But we know all this. None of it is new.

All of this is worrying. An unconvincing strategy, at a time of unprecedented uncertainty, underlines suspicions that economic – and industrial – policy is based on guesswork until Brexit is negotiated. Mrs May acknowledged as much yesterday when she said that as we leave the EU “we want to ensure that we are that truly global Britain with an economy that is in the right shape for the future and driving that growth, so that we really do have an economy in the country that works for everyone. So, there is a lot of work to be done and I suggest we just get on with it.”

“Just get on with it” appears to be as much guidance as will be on offer for the foreseeable future. Mrs May promised an industrial strategy last year after taking office, yet yesterday’s green paper lacks the vision we hoped for – or expected – and is thin on the detail that is required if it is to be effective.

The Prime Minister needs to come up with more specific measures than this paper delivers – the annual Budget gives stronger indicators than yesterday’s roll-out – and her government should get working immediately on ensuring the next step of this process offers more than the vague aims of this uninspiring rehash.