Axing Industrial Strategy offers 'little reassurance ' to firms - Chamber

Business leaders have said that the Government 's decision to abandon the Industrial Strategy will offer “little reassurance ” for businesses that a plan is in place to drive productivity across the country.

Business secretary Kwasai Kwarteng disbanded the Industrial Strategy Council last week, made up of 16 prominent business leaders, and reports indicate that the Industrial Strategy team within the Department of Business, Energy and Industrial Strategy has been dismantled.

Government plans to ditch the strategy and replace it with a Treasury-led “Build Back Better ” framework to rebuild the economy.

The nationwide industrial strategy aimed to boost productivity by supporting businesses to create jobs and increase earning potential. A number of local Industrial Strategies were established off the back of the national initiative.

Leaders have largely criticised the move, including Raj Kandola (pictured), head of policy at the Chamber, who said that government must now produce a workable alternative to the strategy.

He said: "The news that the Government is looking to abandon the Industrial Strategy is deeply disappointing and will offer little reassurance to businesses that a proper plan is in place to drive up productivity levels across the country- a factor that becomes even more pressing as we emerge from the pandemic.

"A number of Local Industrial Strategies such as the one created by the WMCA were also underpinned by the national strategy and are now left up in the air by this unfortunate decision.

"The reality is that with each change of strategy, the interest levels from businesses begin to wane.

"The challenge is now for the Government to produce a workable alternative whilst also securing the direct buy in they need from the business community to make it a success."

On Twitter Adam Marshall, director general of British Chambers of Commerce, said that the decision was “short-sighted ”.

Commenting in the Financial Times, he added: “Businesses have been crying out for a north star to follow for investment and strategic decisions. Our business communities are concerned and wondering what to do now?.?.?. A lot of effort has been put into local industrial strategies � what happens to them next? ”