Download - Industrial strategy master presentation
Industrial Strategy:government and industry in
partnership
March 2013
2
Why we need to act
Industrial Strategy
Progress to date
Structure
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No return to the old growth model
• Previous growth model based on government spending, consumption and property speculation
• Contribution to GDP from Government activity grew from 0.3% between 1990-99 to 0.7% between 1999-2008, becoming the second most important driver of growth
A stable macro business environment is key to enabling growth
• The deficit means Government spending cannot contribute to growth to the same degree
Why we need to act
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0.5%
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2012 2013 2014 2015 2016
Net Trade
Change inInventories
Government (C+I)
DwellingsInvestment
BusinessInvestment
Privateconsumption
GDP
2.0%
3.0%
0.8%
2.7%
3.0%
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UK’s relative position is under threat
• Globalisation and rise of BRICS are changing UK’s relative position in global economy
• Developing countries are competing higher up the value chain, threatening the UK’s traditional comparative advantage
If the UK stands still there is a danger we will be left behind
Why we need to act
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A stable macro environment is key• The Coalition has laid the broad
foundations … o responsible government
financeso a competitive currencyo support for science, o promoting exports, especially
to emerging marketso competitive business taxes
• … But more is needed to keep a sustained advantage 1
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Jan-07
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Euro US $
No business would operate without a long term plan
UK exports of Goods and Services to:
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Other emerging countries BRIC Other advanced economies EU27
£ b
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on
1998 2008 2009 2011
Why we need to act
Industrial Strategy: government and industry in partnership
Industrial Strategy
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Strategic partnerships – the sectors
Industrial Strategy
Early 2013AerospaceAim: Maintain existing UK market share; secure UK employment
NuclearAim: Increase inward investment in energy supply chain
Spring 2013 Summer 2013
Life Science Strategy Dec 2011
Life Science Strategy one-year-on Dec 2012
Information EconomyAim: Optimise ICT use by business
Agri-techAim: Developing and exporting innovative technologies e.g. in food security
EducationAim: Grow UK education exports
Offshore windAim: Increase inward investment in energy supply chain
Oil and GasAim: Increase inward investment in energy supply chain
AutomotiveAim: Repatriate supply chain and exploit low carbon technologies
ConstructionAim: Improve competitiveness and productivity to support increasing exports
Professional Business ServicesAim: Export opportunities in developing economies
Progress
• Seven Catapult Technology and Innovation Centreso High Value Manufacturing, Cell Therapy, Offshore
Renewable Energy, Satellite Applications are openo Connected Digital Economy, Future Cities and
Transport Systems open by June 2013• Support for “eight great technologies”
o £600 million funding in Autumn Statement 2012• Patent Box introduced progressively from April 2013
will provide reduced corporation tax rate of 10% for companies exploiting patented inventions
Sectors
Technologies
•Life Sciences: commitment to sequence the whole genome of 100,000 NHS patients•Automotive: levered over £6bn investment into the UK. £3bn of additional supply chain opportunity: e.g. GM at Ellesmere Port, Bosch in the Midlands•£125mn invested in supply chains to encourage advanced manufacturing investment
Progress to date
Regenerative Medicine
Agri-science
Energy storage
Robotics
Big data Synthetic biology
Advanced materials and nanotechnology
Space technology
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Progress
• Funding for Lending scheme is encouraging the banks to lend more - if it can mobilize the projected £60-£80bn
• The first steps in creating a £1bn Business Bank to support SMEs• UK Green Investment Bank operational since October 2012 - funded with £3bn
• Government is making it easier for businesses to see what it is buying, by publishing £84bn of Procurement pipelines
• Addressing strategic capabilities, e.g. tunnelling
• Employer Ownership Pilot gives employers direct access to public investment for training through a competitive fund
o £90m of funding to support 37 projects in the first tranche; more than matched by £115m of employer contributions
o Second round closes 28 March 2013; prioritising industrial strategy sectors• £6m for 500 people to study Masters level degrees in aerospace engineering
Access to Finance
Procurement
Skills
Progress to date