Rather than picking industry winners, the Chancellor has taken a ‘scattergun’ approach to supporting UK business. From the investment in the new Energy Research Accelerator and the Croxley rail link, to the expanded support for postgraduate research and plans to extend the Oxford Science Vale Enterprise Zone.
As we demonstrated in our Reshoring report, the UK has a once in a generation opportunity to grow its manufacturing base. Changes in global economic conditions, corporate strategies and consumer tastes have put future manufacturing investment in play. The UK will not regain the 700,000 plus jobs it offshored between 1995 and 2011, but a sector focussed strategy could capture 300,000 jobs over the next decade.
Our analysis suggests that sectors such as Life Sciences, Chemicals, Advanced Engineering, Aerospace and Automotive offer real opportunities for the UK. However, success requires a joined up long-term plan over two Parliaments with investment in skills, changes to tax, and investment in infrastructure all required.
The plans announced today address several of the sectors identified but not on the scale required to drive real growth as the OBR’s forecasts appear to confirm. In 2019, there is a planned increase in Government investment of £5 billion but this is too little too late: the opportunity is large scale and immediate, and the UK risks missing out.