The UK government yesterday marked the first-year anniversary of its 10-year Industrial Strategy with a series of announcements around export financing successes and a plan to “accelerate delivery in year two”.
The strategy’s focus on defence investment will likely be continued under Andy Burnham, should he become prime minister – an outcome that has become more likely with the news that Al Carns won’t be standing in a leadership contest.
Industrial Strategy one year in
The Department for Business and Trade (DBT) yesterday published a report summarising achievements and progress made during the first year of its 10-year Industrial Strategy.
The introduction to the report notes:
“Twelve months in, the Industrial Strategy is starting to give businesses certainty and confidence, with joined-up decisions and faster action on infrastructure, planning decisions, energy support, skills gaps, regulatory burdens, the capital for innovative companies, and how government backs UK firms to compete and export globally”.
The report boasts various achievements, including:
· £380bn of investment in high-growth private sector industries
· Cutting electricity bills for energy-intensive businesses by reducing network charges by 90%
· £9bn of funding for “cutting edge research and commercialisation of new technologies”
· £1bn of funding to “train people with the skills to work in key industries”
· New trade deals with India, the Gulf Cooperation Council (GCC) and South Korea
· £11bn in financing provided by UK Export Finance (UKEF), supporting 85,000 jobs
Marco Forgione, director general of the Chartered Institute of Export & International Trade, welcomed the UKEF support, saying:
“The £11.2bn provided in financing is not only supporting exports; it is helping to create jobs, unlock investment and drive growth in communities across the UK.
“A strong and agile UKEF will be increasingly important in enabling businesses of all sizes to succeed in global markets.”
'Regulatory shake-up'
DBT also announced yesterday a new “regulatory shake-up” to “help businesses test and commercialise new products faster”.
The Regulating for Growth Bill, to be introduced by the government, will give businesses “a faster route from idea to market,” business and trade secretary Peter Kyle said.
The government announcement says the legislation will “introduce new statutory sandboxing powers, allowing businesses to test innovative products and services in controlled real-world environments, working closely with regulators to monitor safety and maintain public confidence.”
Burnham on defence and foreign policy
In an op-ed for the Times, Andy Burnham has set out key characteristics of what his foreign policy approach will be if he becomes the next UK prime minister.
He pledged to rebuild UK “hard power” via “reindustrialisation through defence”. This will likely build upon key aspects of Sir Keir Starmer’s tenure, including the Defence Investment Plan that was launched last week, and the pursuit of closer ties with the EU.
He said that he would commit to “an even closer relationship” with European allies, including through groupings like the E3 (the UK, France and Germany) and strengthening the European Nato contingent.
He only briefly mentioned the “critical” relationship with the US, and Politico reports that he could take a “cooler approach” to transatlantic relations with US President Donald Trump than Starmer.
“I think there’s a recognition he and his team will focus on domestic politics first,” an anonymous US official told Politico.
“It doesn’t feel like a ‘I must jet across to D.C. immediately’ tactic is imminent.”
Trump warms to Ukraine cause
Nonetheless, Burnham will likely be heartened that this week’s Nato summit – which was Starmer’s last overseas trip as prime minister – largely went by without a further intensification of US-Europe tensions.
Trump entered the summit repeating complaints about European contributions to Nato, even threatening to “cut off trade” with Spain over its defence spending. However, he became warmer to his allies towards the end, even making positive soundings regarding Ukraine and its leader Volodymyr Zelenskyy, according to the FT.
“It’s hard to believe, correct, from the Oval Office to now… I think we’ve developed a very good relationship,” Trump told Zelenskyy in Ankara. “This is going to be the beginning… And you know, the country [of Ukraine] has a lot of future.”
It was announced at the summit that the US will give Ukraine a licence to make Patriot surface-to-air interceptor missiles, which would increase the country’s capacity to counter Russian ballistic attacks.
The Ukrainian Air Force warned of a shortage of interceptor missiles earlier this week (6 July), following a Russian attack that killed over 20 people.
Also in the trade news
· The latest criticism of the EU’s Entry/Exist System (EES) for cross-border travellers has seen Greece’s airports chief call for a complete “overhaul”, reports the FT
· Russia is banning diesel exports due to domestic fuel shortages caused by its ongoing war with Ukraine, also in the FT
· Ecosystem collapses would pose an existential national security threat to the UK, including possible food shortages, according to a new report cited in the Guardian
Yesterday in trade
· Trump called an end to the ceasefire with Iran
· He also called for the US to “cut all trade ties” with Spain
· The UK announced it will lead a new initiative to develop Deep Precision Strike capabilities in collaboration with European Nato partners
You can read yesterday’s trade news here.
