A strategy for growth?

However beautiful the strategy, you should occasionally look at the results

The government has published its 10-year Industrial Strategy in which it promises to set out  a “new economic approach to backing the UK’s strengths, with ambitious plans for eight high-growth sectors”.

All good, yes? Well, mostly good, rather like my old-favourite the curate’s egg. It’s good to see that the government wants to bring proper sustained growth, and that it recognises that UK manufacturing will be key to that.

There’s a lot to unpick in all this, as the government has thrown loads into the mix. The Big Eight sectors due to be boosted by this are: advanced manufacturing, the creative industries, life sciences, clean energy, defence, digital and technology businesses, financial services and professional services, because apparently, we need more accountants and solicitors to help fuel our economic growth. Who knew?

Is it good for the construction sector? Back to the egg, yes, in parts. They have also promised more details on a trade strategy, a “resilience strategy”, a clean energy workforce strategy, a circular economy strategy to look at the reuse, repair and recycling of materials and products, and a critical minerals strategy.

One of the most interesting parts is the plan to remove some green energy levies from certain energy-hungry businesses, thereby lowering their energy costs, possibly by as much as 25%.  Hurrah, a recognition that, while getting closer to net zero is a laudable aim, the methodology thus far has hampered rather than helped. UK manufacturing faces some of the highest energy costs compared with its peers in the rest of the developed world, particularly our close neighbours France and Germany. As usual when the mainstream media actually pays attention to this sector, I got quite excited when I spotted Alex Patrick-Smith, managing director of Dreadnought Tiles and Ketley Brick in the West Midlands, discussing this on the BBC News.

However, that’s just more tinkering around the edges; the launch on Monday didn’t go as far as to mention any ways that wholesale energy prices might be brought down. It’s this cost that is the ultimate decider of overall costs. Instead, it seems the government is hoping that increasing the supply of renewably-generated electricity will lead to much lower prices. Hmmm.

As usual, the proof will be in the delivery. It’s vital that all these aims recognise that the importance of construction in making it all happen. Construction underpins, or should underpin all this. It’s a pity that it wasn’t specifically spelled out in that list of eight sectors. Whoever put ‘Advanced manufacturing’ on the list probably wasn’t thinking about bricks or plasterboard. Yet, as we have seen in the last few years, some of the most advanced manufacturing techniques are being used, right here, right now, to make those very products, and many of the others that go to make up our built environment.

“Construction’s omission from the strategy is like saying you don’t need water to grow crops.” A great line, one that I wish I’d thought of, but instead stole shamelessly from Dr David Crosthwaite, Chief Economist at BCIS. Still true, though, stolen or not.