Industrial strategy master presentation
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Industrial strategy master presentation

on

  • 709 views

 

Statistics

Views

Total Views
709
Views on SlideShare
703
Embed Views
6

Actions

Likes
0
Downloads
3
Comments
0

2 Embeds 6

https://twitter.com 5
http://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Me Delighted at opportunity No 1 priority for BIS Key element growth agenda

Industrial strategy master presentation Presentation Transcript

  • 1. Industrial Strategy:government and industry in partnership March 2013
  • 2. StructureWhy we need to actIndustrial StrategyProgress to date 2
  • 3. Why we need to actNo return to the old growth model A stable macro business environment is key to enabling growth• Previous growth model based on Net Trade government spending, 4.0% 3.5% 2.7% 3.0% 3.0% consumption and property 3.0% Change in Inventories speculation 2.5% 2.0% Government (C+I) 2.0%• Contribution to GDP from 1.5% Dwellings Investment 0.8% Government activity grew from 1.0% Business 0.3% between 1990-99 to 0.7% Investment 0.5% Private between 1999-2008, becoming 0.0% consumption -0.5% the second most important -1.0% GDP driver of growth 2012 2013 2014 2015 2016• The deficit means Government spending cannot contribute to growth to the same degree 3
  • 4. Why we need to actUK’s relative position is under threatIf the UK stands still there is a danger we will be left behind• 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 4
  • 5. Why we need to actA stable macro environment is key UK exports of Goods and Services to:• The Coalition has laid the broad 250 foundations … 200 o responsible government 150 £ billion finances 100 o a competitive currency 50 o support for science, 0 Other emerging countries BRIC Other advanced economies EU27 1998 2008 2009 2011 o promoting exports, especially 2.2 2 to emerging markets Currency Unit per £ Euro US $ 1.8 o competitive business taxes 1.6 1.4• … But more is needed to keep a 1.2 sustained advantage 1 Jan- Jun- Nov- Apr- Sep- Feb- Jul- Dec- May- Oct- Mar- Aug- Jan- Jun- Nov- 07 07 07 08 08 09 09 09 10 10 11 11 12 12 12No business would operate without a long term plan 5
  • 6. Industrial StrategyIndustrial Strategy:government and industry in partnership
  • 7. Industrial StrategyStrategic partnerships – the sectorsEarly 2013 Spring 2013 Summer 2013 Aerospace Offshore wind Construction Aim: Maintain existing UK Aim: Increase inward Aim: Improve market share; secure UK investment in energy competitiveness and employment supply chain productivity to support increasing exports Nuclear Information Professional Business Aim: Increase inward Economy Services investment in energy Aim: Optimise ICT Aim: Export opportunities supply chain use by business in developing economies Oil and Gas Agri-tech Automotive Aim: Increase inward Aim: Developing and Aim: Repatriate investment in energy exporting innovative supply chain and supply chain technologies e.g. in exploit low carbon food security technologies Life Science Strategy Dec 2011 Education Aim: Grow UK Life Science Strategy education exports one-year-on Dec 2012 7
  • 8. Progress to dateProgressSectors•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 chainopportunity: e.g. GM at Ellesmere Port, Bosch in the Midlands•£125mn invested in supply chains to encourage advanced manufacturing investmentTechnologies• Seven Catapult Technology and Innovation Centres o High Value Manufacturing, Cell Therapy, Offshore Renewable Energy, Satellite Applications are open Big data Space Synthetic Advanced o Connected Digital Economy, Future Cities and technology biology materials and nanotechnology Transport Systems open by June 2013• Support for “eight great technologies” Robotics Energy Agri- o £600 million funding in Autumn Statement 2012 science Regenerative storage Medicine• Patent Box introduced progressively from April 2013 will provide reduced corporation tax rate of 10% for companies exploiting patented inventions
  • 9. Progress to dateProgressAccess to Finance• 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 £3bnProcurement• Government is making it easier for businesses to see what it is buying, by publishing £84bn of Procurement pipelines• Addressing strategic capabilities, e.g. tunnellingSkills• 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 9• £6m for 500 people to study Masters level degrees in aerospace engineering
  • 10. Progress to dateProgressAccess to Finance• 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 £3bnProcurement• Government is making it easier for businesses to see what it is buying, by publishing £84bn of Procurement pipelines• Addressing strategic capabilities, e.g. tunnellingSkills• 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 9• £6m for 500 people to study Masters level degrees in aerospace engineering