UK Modern Industrial Strategy

Baroness Bennett of Manor Castle Excerpts

Monday 30th June 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Lord may say that about the Employment Rights Bill, but I speak to many businesses and many of them do more than what that Bill does; but that is a conversation for another day.

The whole landscape is changing. We have to be responsive to that, and we are not leaving any sectors behind.

[Baroness Bennett of Manor Castle (GP)]

My Lords, in its introduction, the industrial strategy says that

“we live in a world dominated by the rise of superstar firms, whose success spills over to the wider economy”.

It seems that the Government are adopting a trickle-down theory of business, but is this not assuming a future that looks like the past two decades? It has been an era of cheap, abundant financing for firms that have often burned through enormous sums of money—money used to force competitors out of business and to buy out genuine innovators and swallow them up, or squash them, not to deliver genuinely productive, useful, substantive products and services.

This is the idea of the unicorn: a biased picture of entrepreneurship that favours valuation over value creation. This is the model that has given us the massively unequal, deeply unstable society we have today. Surely, we cannot keep going the way we are. It has got us to the disastrous point we are now at.

[Lord Leong (Lab)]

I do not quite agree with the noble Baroness. At the end of the day, the Government have to make a choice. We have identified the top eight sectors that we will support with this strategy going forward. At the same time, other industries will also benefit from the support because of its roll-on effect. Yes, ideally, we would like to support every sector, but we need to pick and choose. It is just like running your own business: you pick and choose who your customers are and you work with them, but you still serve everybody.

The industrial strategy focuses on eight sectors, but other foundational sectors will also be supported through the various plans set out in the strategy.