Standing on the threshold of Number 10 in July last year, Mrs May pledged to fight the “burning injustices” plaguing British society, to expand opportunity for all and to allow people to “go as far as your talents will take you”. Today her government published the Modern Industrial Strategy green paper, in a milestone towards delivering that objective.
Mrs May has not shied away from the scale of the challenge since entering Number 10, reiterating the need for government to intervene and create an economy that works for all at her party’s conference in October and, most recently, at Davos last week. The need to address regional inequalities and inject more fairness into the economy have also been hallmarks of Theresa May’s speeches in recent months.
She has been clear in her worldview that capitalism needs fixing, and that businesses and free markets cannot be relied on to address the issues fuelling the rise of populism internationally on their own.
For Mrs May, setting out an industrial strategy offers a framework for her domestic agenda and attempts to signal that her government is doing more than managing the challenges posed by Brexit. It also offers the chance to build on the Conservative Party’s current dominance of the political landscape, to see off the UKIP challenge once and for all, and take advantage of Labour’s weakness.
Today’s green paper puts some flesh on the bones of what that strategy looks like for the first time.
The Modern Industrial Strategy green paper is wide-ranging in its ambition. There are some reflections that immediately come to mind before looking at the specific proposals contained in the green paper:
- It is a discussion document, and it’s taken six months to get this far. The government will need to pick up its pace if an industrial strategy is to bear fruit in time for Brexit (not to mention the next election). This amplifies some of the criticisms that have been made of Mrs May’s governing style already. Number 10 cannot oversee everything, and attempting to do so will hold up policy development.
- The green paper is all-encompassing, to the point of being unwieldy and unsustainable. It attempts to give something to everyone. If everything is a priority, nothing is a priority.
- What’s more, some of the ten pillars contradict each other. Should the UK invest in building on competitive advantage, or should government be delivering balanced regional growth? UK Sport delivered a record haul of Olympic medals at Rio because it ruthlessly invests in sports where British athletes excel – at the cost of other sports.
- Some of the pillars identified are hackneyed. Every government wants to create the right conditions for businesses to start and grow, and access to finance is a perennial issue that no government has been able to nail. Will this time be different?
- Despite all of this, particular priorities do shine through. Mrs May wants to deliver for the North, and after some apparent hesitation she has embraced George Osborne’s Northern Powerhouse strategy. Addressing the UK’s productivity challenge also continues to be crucial. And ensuring the supply of affordable energy remains a priority.
- Politically, the absence of Philip Hammond from today’s papers suggests Treasury is not playing the overarching role it may have done previously. No new money has been announced today – allocations were made by Philip Hammond at the Autumn Statement in November. But it’s unthinkable that George Osborne wouldn’t be front-and-centre today if he were still in Number 11. Successive prime ministers have tried to curb Treasury dominance by empowering a business department, and early indications are Mrs May is succeeding where others have failed. This is not least because of her decision to appoint Greg Clark as Business Secretary. Not only is he competent and a hard worker, but he shares Mrs May’s vision of the role government should play in the economy.
You can download and read more about today’s green paper in our online WA briefing.