Industrial Strategy summary updated 26 March 2013

737 views
639 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
737
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Me Delighted at opportunity No 1 priority for BIS Key element growth agenda
  • Industrial Strategy summary updated 26 March 2013

    1. 1. Industrial Strategy:government and industry in partnership March 2013
    2. 2. StructureWhy we need to actIndustrial StrategyProgress to date 2
    3. 3. Why we need to actNo return to the old growth model A stable macro business environment is key to enabling growth Expenditure Contributions to Growth• Previous growth model 4 3.3% based on government 2.7% ppts ) 3 GDP growth 2.0% spending, consumption 2 - 2.5% 1.4% 0.2% and property speculation Average annual contribution ( 1 0.6%• Contribution to GDP from 0 -1 Government activity grew -2 from 0.3% between 1990- -3 99 to 0.7% between 1999- -4 OBR forecasts 2008 – becoming the 1997-07 2008-09 2010-11 Govt consumption & investment 2012 2013 Net trade 2014-15 2016-17 second most important Other$ Business investment driver of growth Household consumption & NPISH# $ includes dwellings for Budget Responsibility Economic and Fiscal forecasts March 2013 Source: Office investment & changes in inventories # non-profit institutions serving households (mainly charitable sector)• The deficit means Government spending cannot contribute to growth to the same degree 3
    4. 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. 5. Why we need to actA stable macro environment is key UK exports of Goods and Services to:• Government 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. 6. Industrial StrategyIndustrial Strategy:government and industry in partnership
    7. 7. Industrial StrategyStrategic partnerships – the sectorsEarly 2013 Spring 2013 Summer 2013 Aerospace (Launched) 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 Information Professional Business Nuclear (Launched) Economy Services Aim: Increase inward Aim: Optimise ICT Aim: Export opportunities investment in energy use by business in developing economies supply chain 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. 8. Progress to dateProgressSectors• Publication of Sector Strategies o Aerospace “Reach for the skies” - £1bn to fund Aerospace Technology Institute; match funded by industry o Nuclear “The UK’s Nuclear Future” – £15m for new National Nuclear Users Facility• £500m to support other key industrial strategy sectors in Budget 2013• Life Sciences: commitment to sequence the whole genome of 100,000 NHS patients• £125m invested in supply chains to encourage advanced manufacturing investmentAccess to Finance• First strategy update for the Business Bank; launching £300m investment scheme• Funding for Lending scheme is encouraging the banks to lend more - if it can mobilize the projected £60-£80bn• UK Green Investment Bank operational since October 2012 - funded with £3bnProcurement• Publishing £84bn of Procurement pipelines• Addressing strategic capabilities, e.g. tunnelling
    9. 9. Progress to dateProgressTechnologies• 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 £600m funding in Autumn Statement 2012 storage science Regenerativ e Medicine• Patent Box introduced progressively from April 2013 will provide reduced corporation tax rate of 10% for companies exploiting patented inventionsSkills• 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. 10. Progress to dateProgressTechnologies• 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 £600m funding in Autumn Statement 2012 storage science Regenerativ e Medicine• Patent Box introduced progressively from April 2013 will provide reduced corporation tax rate of 10% for companies exploiting patented inventionsSkills• 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

    ×