New approach: Premier Theresa May asks business to work together to tackle industry-specific challenges
LONDON: Britain’s government on Monday unveiled a new interventionist approach to rebalance its heavily services-based economy for the post-Brexit era, in a break with traditional Conservative laissez-faire economic policy.
Prime Minister Theresa May’s “Modern Industrial Strategy” demands closer collaboration in key industries in exchange for government support, aiming to increase productivity, reinvigorate industrial production and stimulate investment in technology and R&D.
The focus on industry and the shift to a governmental hands-on approach challenges the laissez-faire ideology championed by former prime minister Margaret Thatcher.
“Underpinning this strategy is a new approach to government, not just stepping back and leaving business to get on with the job, but stepping up to a new, active role that backs business,” May wrote in a consultation document on the policy.
May asked businesses to work together to tackle industry-specific challenges, citing examples
of successful collaboration that have helped attract overseas investment from the likes of carmaker Nissan,
and enabled aerospace firms such as BAE Systems to develop a competitive edge.
In return she pledged to reciprocate with “Sector Deals” that address regulatory barriers, look at how trade and investment deals can be used to increase exports, and support the creation of new institutions to provide leadership, drive innovation or boost skills.
The government said early work had been done on deals for a number of industries: life sciences, ultra-low emission vehicles, nuclear and creative industries. But it said it would work with any sector that could “organise behind strong leadership to address shared challenges and opportunities”.
The plan aspires to distribute wealth more evenly, following decades of industrial decay in parts of Britain. The economy’s narrow base has been blamed for a mood of disenfranchisement that drove many voters to back Brexit.
It aims to boost Britain’s productivity, which has long lagged European rivals Germany and France. It cited the success of targeted government intervention in countries including the United States and South Korea. — Reuters