UK Modern Industrial Strategy

Baroness O'Grady of Upper Holloway Excerpts

Monday 30th June 2025 Lords Chamber

[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.

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, I strongly welcome this industrial strategy, alongside the TUC and the CBI. It is about a mission for fair growth and delivering secure, skilled jobs in the parts of the country that need them most. I am also very conscious of the history of industrial policy. I remember when noble Lords opposite, as members of a Conservative Government, were responsible for temporarily nationalising Rolls-Royce because they saw the company as key to the defence sector and manufacturing. Making more things here in Britain matters.

I also welcome the focus on vocational training. Can the Minister say more about the role of higher education, which in successful countries has traditionally had a key role in supporting clusters such as R&D and innovation, with a view, obviously, to better productivity in the country?

[Lord Leong (Lab)]

As usual, my noble friend makes a brilliant observation; she is spot-on. We have to focus on skills. This is another thing that is brought to my attention every time I meet with businesses in the UK, and with international businesses. They say, “You need to close the skills gap”. Skills are missing in certain places, and this strategy addresses that.

We are investing in technical excellence colleges through the further education scheme. As far as higher education goes, noble Lords know that four of the top universities are in this country. Businesses work with them and fund their research as well. We attract international business because of the higher education expertise and professionalism in this country.

Let me say more about skills. We have just announced £275 million of skills investment over three years, which forms a wider skills package made up of £75 million of government resource investment and £200 million of capital funding, made available from our new skills mission fund.

We committed in the industrial strategy to investing over £100 million to boost engineering skills. That is made up of £75 million of resource funding and £25 million of capital funding from the skills mission board. The Department for Business and Trade and the Department for Education have contributed funding for these engineering skills. We are also investing a further £187 million to support the digital skills package, which the Prime Minister announced at London Tech Week a few weeks ago. More details on defence skills will be set out in the forthcoming defence industrial strategy.