Bring Back the Industrial Strategy

Submitted by: 10 members.
Mover: Sarah Olney MP (Spokesperson for Treasury, Business and Industrial Strategy).
Summation: Lord Fox (Lords Spokesperson for Business and Industrial Strategy).

Conference believes that:

1. An industrial strategy is essential for achieving strong and sustainable economic growth, which in turn will create good jobs, fund vital public services and build strong communities.
2. An industrial strategy should create a purpose-driven partnership between Government and business with the aim of tackling the great economic and societal challenges of our time.
3. A successful industrial strategy should coordinate policies across a range of key areas, such as skills, Research & Development (R&D), climate change, infrastructure, taxation, finance and trade.

Conference notes that:

1. A range of generational challenges, including the legacy of the Covid-19 pandemic, the climate emergency, the energy crisis, the Government?s failed deal with Europe and declining economic growth under the Conservatives make the adoption of an industrial strategy more necessary than ever.
2. Other major economies, including Germany, China, the US and the EU have developed industrial policy responding to these challenges.
3. The US Inflation Reduction Act, supply chain pressures involving China, and EU plans to reshore manufacturing also create a vital need for a UK industrial strategy.
4. In contrast, this Conservative Government took the ideological and damaging step of scrapping the UK?s industrial strategy in 2021 and disbanding the Industrial Strategy Council oversight body.
5. Since 2016, the Conservative Party?s muddled and confused approach saw the business department restructured twice and the Secretary of State changed seven times, undermining stability and business confidence.
6. As a result of the Conservatives? economic failures, the UK has experienced falling business investment, lower productivity, skills shortages, gaping regional disparities and anaemic growth.
7. An industrial strategy is vital for addressing the rise of Artificial Intelligence technology (AI), which presents huge opportunities to transform our economy and people’s lives for the better, whilst also presenting significant risks.

Conference celebrates Liberal Democrat achievements on industrial strategy in Government, including:

1. Unlocking vital investment by setting up the Green Investment Bank, the British Business Bank and the Regional Growth Fund.
2. Supporting manufacturing and SMEs, through the Business Growth Service, the Manufacturing Advisory Service and the Growth Accelerator Programme.
3. Bringing together business and academia to power regional growth, by creating the Catapult centres, and creating two million new apprenticeships.

Conference reaffirms Liberal Democrat commitments to:

1. Scrap business rates and replace them with a Commercial Landowner Levy.
2. Replace the broken apprenticeship levy with a broader and more flexible skills and training levy.
3. Follow the four-step roadmap towards rebuilding trade and cooperation with Europe set out in policy paper 144, Rebuilding Trade and Cooperation with Europe.
4. The devolution of responsibility for regional economic development as set out in the 2021 motion “A Framework for England in a Federal UK”.

Conference therefore calls on the Government to:

1. Establish a comprehensive industrial strategy, in partnership with business, civil society (including Trades Unions) and academia, focused on key economic and societal challenges.
2. Ensure that the principles of tackling the climate emergency; boosting living standards; spreading prosperity everywhere in the UK; and growing the economy are at the heart of the industrial strategy.
3. Provide a strategic framework for effectively addressing the needs of economically disadvantaged, remote or rural areas by collaborating with local, regional and devolved authorities in England, Scotland, Wales and Northern Ireland, to establish and set out how the strategy supports and facilitates industrial regeneration and innovation across all UK nations and regions.
4. Work towards four key business priorities: a positive business climate; leveraging technology to supercharge the green economy; empowering small businesses to create prosperity in local communities, and boosting trade.
5. Enable businesses to achieve these priorities by taking action in four key areas: enabling the workforce of tomorrow; investing in key infrastructure; scaling digital innovation and technology adoption; and creating financial markets that work for all businesses.

Conference further calls on the Government to:

1. Rebuild business and investor confidence by committing to fiscal responsibility, respect of international treaties, and the creation of a stable business environment.
2. Effectively communicate the objectives and tools of the industrial strategy to industry, to provide clear signals for investment and business decisions.
3. Build an inclusive economy with broad access to training and skills, by scrapping the lower ?apprentice?s wage? band and boosting the take-up of apprenticeships.
4. Set up effective incentives for R&D investment, decarbonisation, and the take-up of digital technologies, especially among SMEs; and ensure that the UK?s regulatory, R&D and tax frameworks are geared towards fostering innovation.
5. Set up a plan for investment in key infrastructure to enable the industrial strategy, covering areas including rail, building insulation, the national grid and EV charging.
6. Create a thriving manufacturing sector by investing in the skills of the future; promoting net-zero transport and energy efficiency; harnessing affordable clean energy; and adopting an ambitious international trade policy.
7. Power scale-up companies, especially outside of London and the South East, using innovative ways of crowding-in private sector investment, drawing from successful international models such as the French Tibi scheme.
8. Reestablish the Industrial Strategy Council (ISC) and put it on a statutory footing, to ensure vital oversight, monitoring and evaluation of the industrial strategy for the long-term.
9. Explore new ways to improve interdepartmental work on cross-cutting policies, such as giving the Cabinet Office more powers to coordinate and implement industrial strategy.
10. Bring forward legislation with the aim of creating a clear, workable and well-resourced cross-sectoral regulatory framework for AI, that promotes innovation while creating certainty for AI users, developers and investors; and establishing transparency and accountability for AI systems in the public sector.
11. Negotiate the UK’s participation in the Trade and Technology Council so we can play a leading role in global AI regulation, and work with international partners in agreeing common standards for AI risk and impact assessment, testing, monitoring and audit.

Applicability: Federal; except i) (lines 52-53), ?and boosting the take-up of apprenticeships? in 3. (line 85), and part of 5. (lines 91-93), which are England only.

Motion before amendment

Conference believes that:

1. An industrial strategy is essential for achieving strong and sustainable economic growth, which in turn will create good jobs, fund vital public services and build strong communities.
2. An industrial strategy should create a purpose-driven partnership between Government and business with the aim of tackling the great economic and societal challenges of our time.
3. A successful industrial strategy should coordinate policies across a range of key areas, such as skills, Research & Development (R&D), climate change, infrastructure, taxation, finance and trade.

Conference notes that:

1. A range of generational challenges, including the legacy of the Covid-19 pandemic, the climate emergency, the energy crisis, the Government?s failed deal with Europe and declining economic growth under the Conservatives make the adoption of an industrial strategy more necessary than ever.
2. Other major economies, including Germany, China, the US and the EU have developed industrial policy responding to these challenges.
3. The US Inflation Reduction Act, supply chain pressures involving China, and EU plans to reshore manufacturing also create a vital need for a UK industrial strategy.
4. In contrast, this Conservative Government took the ideological and damaging step of scrapping the UK?s industrial strategy in 2021 and disbanding the Industrial Strategy Council oversight body.
5. Since 2016, the Conservative Party?s muddled and confused approach saw the business department restructured twice and the Secretary of State changed seven times, undermining stability and business confidence.
6. As a result of the Conservatives? economic failures, the UK has experienced falling business investment, lower productivity, skills shortages, gaping regional disparities and anaemic growth.

Conference celebrates Liberal Democrat achievements on industrial strategy in Government, including:

1. Unlocking vital investment by setting up the Green Investment Bank, the British Business Bank and the Regional Growth Fund.
2. Supporting manufacturing and SMEs, through the Business Growth Service, the Manufacturing Advisory Service and the Growth Accelerator Programme.
3. Bringing together business and academia to power regional growth, by creating the Catapult centres, and creating two million new apprenticeships.

Conference reaffirms Liberal Democrat commitments to:

1. Scrap business rates and replace them with a Commercial Landowner Levy.
2. Replace the broken apprenticeship levy with a broader and more flexible skills and training levy.
3. Follow the four-step roadmap towards rebuilding trade and cooperation with Europe set out in policy paper 144, Rebuilding Trade and Cooperation with Europe.

Conference therefore calls on the Government to:

1. Establish a comprehensive industrial strategy, in partnership with business, civil society and academia, focused on key economic and societal challenges.
2. Ensure that the principles of tackling the climate emergency; boosting living standards; spreading prosperity everywhere in the UK; and growing the economy are at the heart of the industrial strategy.
3. Work towards four key business priorities: a positive business climate; leveraging technology to supercharge the green economy; empowering small businesses to create prosperity in local communities, and boosting trade.
4. Enable businesses to achieve these priorities by taking action in four key areas: enabling the workforce of tomorrow; investing in key infrastructure; scaling digital innovation and technology adoption; and creating financial markets that work for all businesses.

Conference further calls on the Government to:

1. Rebuild business and investor confidence by committing to fiscal responsibility, respect of international treaties, and the creation of a stable business environment.
2. Effectively communicate the objectives and tools of the industrial strategy to industry, to provide clear signals for investment and business decisions.
3. Build an inclusive economy with broad access to training and skills, by scrapping the lower ?apprentice?s wage? band and boosting the take-up of apprenticeships.
4. Set up effective incentives for R&D investment, decarbonisation, and the take-up of digital technologies, especially among SMEs; and ensure that the UK?s regulatory, R&D and tax frameworks are geared towards fostering innovation.
5. Set up a plan for investment in key infrastructure to enable the industrial strategy, covering areas including rail, building insulation, the national grid and EV charging.
6. Create a thriving manufacturing sector by investing in the skills of the future; promoting net-zero transport and energy efficiency; harnessing affordable clean energy; and adopting an ambitious international trade policy.
7. Power scale-up companies, especially outside of London and the South East, using innovative ways of crowding-in private sector investment, drawing from successful international models such as the French Tibi scheme.
8. Reestablish the Industrial Strategy Council (ISC) and put it on a statutory footing, to ensure vital oversight, monitoring and evaluation of the industrial strategy for the long-term.
9. Explore new ways to improve interdepartmental work on cross-cutting policies, such as giving the Cabinet Office more powers to coordinate and implement industrial strategy.

Applicability: Federal; except i) (lines 52-53), ?and boosting the take-up of apprenticeships? in 3. (line 85), and part of 5. (lines 91-93), which are England only.

Amendments

Drafting

The FCC has agreed to make the following drafting amendment to the motion:

In a) (line 61), after ‘civil society’ insert ‘(including Trades Unions)’.

Amendment One

PASSED

Submitted by: 10 members
Mover: Joshan Parmar.
Summation: Lord Clement-Jones (Lords Spokesperson for Science, Innovation and Technology).

After VI. (line 39), insert:

VII.    An industrial strategy is vital for addressing the rise of Artificial Intelligence technology (AI), which presents huge opportunities to transform our economy and people’s lives for the better, whilst also presenting significant risks.

After 9. (line 108), add:

10.    Bring forward legislation with the aim of creating a clear, workable and well-resourced cross-sectoral regulatory framework for AI, that promotes innovation while creating certainty for AI users, developers and investors; and establishing transparency and accountability for AI systems in the public sector.

11.    Negotiate the UK’s participation in the Trade and Technology Council so we can play a leading role in global AI regulation, and work with international partners in agreeing common standards for AI risk and impact assessment, testing, monitoring and audit.

Amendment Two

PASSED

Submitted by:North West Region
Mover: Andrew Haldane.
Summation: Iain Donaldson.

After iii) (line 58), insert:

iv.      The devolution of responsibility for regional economic development as set out in the 2021 motion “A Framework for England in a Federal UK”.

After b) (line 66), insert:

c)       Provide a strategic framework for effectively addressing the needs of economically disadvantaged, remote or rural areas by collaborating with local, regional and devolved authorities in England, Scotland, Wales and Northern Ireland, to establish and set out how the strategy supports and facilitates industrial regeneration and innovation across all UK nations and regions.