The workers' long-awaited industrial strategy will not be published until June, but the minister will submit plans for individual sectors to show that they are working to start growing, it has appeared .
Life Science Strategy – highlighted by Prime Minister Rachel Reeves in his prominent growth speech in Oxfordshire – and advanced manufacturing have been assigned to be published early.
However, the Guardian understands that the broader industrial strategy previously scheduled for the spring is expected to be published around the same time as the spending review on June 11th.
Strategies that involve throwing government resources behind promising sectors are key to the labour growth mission. Sources close to the government said there was a desire to move some of their strategies forward to revive trust in vulnerable businesses.
Official figures scheduled for Thursday were hit by Reeves after the UK fell sharply in the fourth quarter of 2024 and after a sharp drop in national production after the October budget. It is expected to indicate a risk of a recession.
The Bank of England warns that GDP is on track to fall by 0.1% in the last three months of last year. It is expected that the recovery will be due to the same thin margin at the beginning of 2025. This means that the technical definition of a recession (output for two consecutive quarters) could be narrowly avoided.
However, the numbers highlight the labor challenges after a period of flat progression since winning the Starmer election in Kiel last July. The banks also warn that the economy will remain weak this year despite British households facing increasing pressure from inflation.
Sources said the government is preparing to provide updates on several sectors prioritized by industrial strategy in the coming months ahead of the announcement of a formal spending review.
It will use business secretary Jonathan Reynolds' speech on Thursday to re-express Labour's growth commitment by discussing industrial strategies and planning to shake up regulatory barriers that hold businesses down.
In a speech at Samsung's headquarters in London, Reynolds will announce “strategic maneuvering” of competitive and market authorities, setting government priorities against regulators.
After ministers kicked out the chairman of competitive watchdog Marcus Boccalin this month, they tried to replace him with former Amazon-UK boss Doug Girl and send a message to promote growth.
“I want regulators to focus their efforts on real harm to UK-based consumers and businesses, so they want to promote trust and prevent abuse,” Reynolds said.
It focused on part of the industrial strategy after Reeves used his growth speech last month to say that manufacturers had been “slapning their heads for years” about the lack of proper planning from the government.
“That's why we launched our modern industrial strategy and encouraged investment in industries that define success in the coming years,” she said.
However, the industry has complained that the details are almost approaching so far. Also, given the voluntary constraints on Treasury spending, concerns have risen about the level of government ambition.
The Office for Budget Responsibility (OBR) is expected to revise its growth forecast for next month, so Reeves has made its announcement of spending cuts rather than breaking fiscal rules.
The government is keen to demonstrate its commitment to life sciences in the wake of AstraZeneca's decision to abandon plans to expand its vaccine production plant £450 million in spakes on Merseyside. The drugmakers denounced the prime minister's decision to lower taxpayer subsidies provided to the site, causing an unsightly briefing war with Downing Street.
Reeves' speech includes plans to promote the expansion of Oxford-Cambridge Corridor, where clusters of research-intensive life sciences companies are located, including building new transport links and giving permission for new reservoirs. Ta.
However, life science companies point to a wider environment, including pricing for NHS drugs and the approval process for new treatments as key to unlocking growth.
Richard Torvet, CEO of the UK Pharmaceutical Industry Association, said the government's plans for the NHS, life sciences sector and industrial strategy “should work seamlessly to support our businesses.
“The UK economy needs a strategy to establish growth as a priority and guide principle across all government sectors,” he said.
Make UK, a manufacturer's lobby group, expects that sophisticated manufacturing strategies will build on plans laid out by conservative governments.
It calls for a new industry-led council to oversee sector expansion and a series of policy changes to make the environment more growth-friendly, including funding for energy market reforms and apprenticeships.
The government released Invest 2035, a green paper on industrial strategy last fall, identifying eight sectors it deemed important to boost economic growth.
These included life sciences and advanced manufacturing, along with creative industries, clean energy, defense, the high-tech sector, financial services, professional services and business services.
