PM pledges extra support for life sciences and other sectors but unions say plans could be ‘hobbled’ outside single market

Trade unions, MPs and business leaders have questioned whether the government’s new industrial strategy will succeed if Britain leaves the single market in Europe, despite Theresa May pledging that it will create a platform for businesses to grow after Brexit.

The industrial strategy, unveiled in Warrington, Cheshire, shows the prime minister is prepared to take a more interventionist approach in British industry than previous governments.

The green paper states that five sectors will receive special government support because of their potential: life sciences, vehicles with low CO 2 emissions such as electric cars, industrial digitalisation, the creative sector and the nuclear industry. Support could include help with trade deals, deregulation and the creation of new institutions to develop skills or research.

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However, Len McCluskey, the general secretary of Unite, said the plan could be overshadowed by May’s pledge that the UK will leave the single market. “Above all, the greatest support the government could provide to UK jobs and business is to commit to access to the single market and the customs union,” he said. “Without this access, manufacturing is going to be seriously hobbled.”



Business leaders welcomed the concept of an industrial strategy but accused the government of missing an opportunity to improve productivity in Britain, which lags behind other developed economies. Stephen Ibbotson, director of business at the ICAEW, which represents chartered accountants, said: “A golden opportunity has been missed to provide a solution to the UK’s productivity puzzle and this is just one example of the significant lack of detail in the industrial strategy overall.”

The EEF, the manufacturing trade body, said the industrial strategy could provided a “huge tonic” if it tackles the “key weaknesses, areas of concern and opportunities” that are outlined in the consultation document. Terry Scuoler, the EEF chief executive, said: “It must live up to the promise of driving different behaviours and outcomes for the British economy, which requires the whole of government working together to support it with clear leadership from the prime minister and her cabinet. The fact that the PM has unveiled these plans herself suggests that this message too has successfully landed.”

UK Steel said the industrial strategy was an “important first step in achieving a strong, sustainable and world-class steel sector”. Thousands of jobs remain under threat in the struggling steel industry.

Sectors will be expected to organise themselves to lobby for government support or law changes. An “industrial strategy challenge fund” will help distribute millions of pounds for research and development in areas such as smart energy and robotics.

A £556m boost for the “northern powerhouse” has also been announced including a £10m fund to develop the life sciences for Manchester and Cheshire firms and a new conference centre for Blackpool.

In addition, the green paper includes a £170m investment in new “prestigious” institutes of technology. Greg Clark, the business, energy and industrial strategy secretary, said the government believed the UK was falling behind nations such as China when it came to workers’ technical skills. “What we’re proposing here is that if we want to prosper in the future, if we want to achieve our potential, we think that a big priority has to be to improve our level of skills training,” he told BBC Radio 4’s Today programme.

However, Clive Lewis, the shadow business secretary, said the technical education strategy would “do little to plug the £1.15bn hole in the adult skills budget created by Tory cuts since 2010” and said the government had already watered down a series of flagship commitments, from putting workers on boards to tackling executive pay. “All the signs so far are that the government is not prepared to put its money where its mouth is,” he said.

GMB, the UK’s third largest union, also cautiously welcomed the strategy, which it said “gives a clear indication the government have finally accepted big businesses can’t be left to shape the UK economy”.

National secretary Jude Brimble said employee rights should be at the heart of any industrial renewal. “As we face an uncertain future and economy outside the EU, a new ‘active’ role for government cannot mean actively attacking rights and protections at work under the guise of deregulation and cutting red tape – we’ve been there before,” she said.

The SNP and Liberal Democrats, who oppose the UK exiting the single market, were more sceptical.

The Lib Dem business spokesman, Don Foster, said it was laughable that an ambitious industrial strategy could be achieved during a withdrawal from the single market. The effects on manufacturing of leaving the customs union are not mentioned in the document.

“On top of Brexit, this Conservative government is cutting education spending, slashing support for green industry and failing to invest in infrastructure,” Lord Foster said. “The Tories used to claim to be the party of business – now they are only the party of hard Brexit.”

Ministers have tasked Sir Mark Walport, the government’s chief scientific adviser, with deciding whether the UK should establish a research centre for energy storage, batteries and new power grid technology.



Energy storage is seen as a key way for the National Grid to cope with the intermittent nature of a growing amount of renewable power, which now accounts for 25% of electricity generation. Batteries are also key to the electric vehicles which the government has enthusiastically backed with grants and tax breaks.

“Given the UK’s underlying strengths in science and energy technology, we want to be a global leader in battery technology,” the industrial strategy said.

Kate Blagojevic, Greenpeace’s head of energy, criticised nuclear as a source of energy, describing it as “more expensive and hazardous”. However, she said: “Renewable technology and low-carbon transport are the way forward. So it is great to see the government’s focus on electric vehicles and on skilling up our workforce.”

However, Caroline Lucas, co-leader of the Green party, said ministers had missed an opportunity. “At the heart of any forward-thinking industrial strategy should have been an unequivocal commitment to phasing out the use of fossil fuels,” she added.

The government also promised to publish a long-term “roadmap” this year on keeping down energy costs to businesses. “Industrial gas costs are internationally competitive but electricity costs have moved out of line with other European countries,” the green paper said.

The roadmap will look at energy efficiency and whether future support for offshore windfarms should be given under the current subsidy scheme, which is paid for by levies on all energy bills.

Solar power, fracking for shale gas, and carbon capture and storage for fossil fuels did not feature in the industrial strategy.