The government has been accused of mishandling its flagship industrial policy as Brexit dominates the agenda in Whitehall, with business leaders warning that the strategy is not receiving enough attention.

The business lobby has joined Labour and Liberal Democrat MPs in condemning delays that mean ministers have yet to appoint a watchdog to oversee the industrial strategy or give details of the funds available to promote vital industries.

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Labour has tabled a series of parliamentary questions demanding an update from the business secretary, Greg Clark, from as early as Tuesday over the lack of progress seven months on from the launch of the industrial strategy.

Rebecca Long-Bailey, the shadow business secretary, who lodged the questions last week, said: “The cabinet is in chaos over Brexit and their inability to focus on anything else is leaving businesses out to dry.”

Although Theresa May declared industrial strategy a priority when she became leader of the Conservative party two years ago, there are growing fears among business leaders that the policy is being allowed to wither on the vine.

A white paper published last November was 18 months in the making and billed as the government’s principal vehicle for boosting economic productivity – seen as one of the key reasons behind sluggish wage growth in the UK since the financial crisis. However, Brexit has overshadowed day-to-day life in Whitehall at the expense of the domestic policy agenda.

Adam Marshall, the director general of the British Chambers of Commerce, said: “Because of Brexit the industrial strategy is not getting enough attention. You could have the best possible deal in the world for Brexit but it won’t make a difference if the conditions for growth aren’t right at home.”

Labour has called on Clark to urgently explain why the watchdog – to be called the independent industrial strategy council and promised in last autumn’s white paper – has not taken shape more than half a year later. Conceived of as a means of keeping tabs on the government’s progress, a chair has yet to be named for the oversight body and there are no members of its board.

A spokeswoman for the Department of Business, Energy and Industrial Strategy (BEIS), said it was important to ensure the watchdog had “the right expertise to monitor our progress in delivering our ambitious, modern industrial strategy”.

She added: “We are finalising the council’s membership and scope. Details will be announced in due course.”

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Lee Hopley, the chief economist at the EEF manufacturers’ lobby group, said there had been a drop-off in activity since the launch of the white paper. “We need to measure progress; how do we know if this is working without the council?”



Sources told the Guardian of mounting tensions between the business department on one side and No 10 and the Treasury on the other over the level of funding available for the industrial strategy. However, there are increasing concerns businesses could be putting investment on hold as a consequence.

Vince Cable, the leader of the Liberal Democrats and former business secretary in the coalition government, said: “The lack of progress on the industrial strategy, coupled with the uncertainty caused by Brexit, is already holding back investment and will continue to do so to the tune of many billions of pounds.”



