Measures outlined in the government’s Industrial Strategy provide a strong framework for growth but must not overlook any sector, business or the region’s supply chains, East Midlands Chamber has said.
Investment in skills, speeding up of planning decisions, smother trade with the EU through a closer relationship and increased support for small and medium-sized businesses (SME’s) are among initiatives revealed in the government strategy.
Known as Invest 2035, publication of the Industrial Strategy followed an open consultation process, which included feedback from East Midlands Chamber members.
Key points in the Industrial Strategy include:
Business support:
- ‘Business Growth Service’ to improve access to government support and funding
- Initiatives to address late payment from large suppliers
- Procurement improvements to make securing government contracts easier
- Expansion of the ‘Made Smarter’ programme, with up to £99m from 2026 for SME manufacturing businesses to take up new technology
International Trade
- Free and fair trade promoted through strong international partnerships
Planning
- ‘Fast-track’ projects through the planning system
Skills:
- £1.2bn further investment into skills per year
- Support for adult learners through Local Skills Improvement Plans (LSIP’s)
- Courses to support 16–19-year-olds
- Further Education – funding to recruit teachers
Sectoral investment
- £39bn into advanced manufacturing
- £30bn into clean energy
- £31bn into creative industries
- £65bn into professional and business services
East Midlands Chamber director of policy and insight Richard Blackmore said: “Measures announced in the Industrial Strategy are a welcome blueprint for businesses to build on and, depending on how implemented, could go some way to ease the challenges firms have been facing – getting support so an SME can grow, reducing the reams of paperwork that have made trade complicated since exiting the EU, addressing the skills gap – these all seem progressive steps on paper.
“The detail of exactly how each element is applied is what will really matter and what needs to be scrutinised going forward.
“For small and medium sized businesses, access to finance can make a big difference to growth, and a commitment to address late payment from suppliers is something firms have been calling for, but we need to see how this plays out in practice.
“When it comes to exporting goods, reducing the paperwork that has made trade so costly and time consuming since exiting the EU is another area that would be a huge relief to exporters, if the measures announced work. This needs to be pragmatic and a streamlined process that’s quick and straightforward.
“Enhancements to the planning system are always welcome, with our members having reported slow decision-making as a barrier to growth. However, this needs to be a comprehensive root and branch review, not simply a tinkering at the edges.
“The planning reforms the government has highlighted don’t address the paucity of planning resources – one of the biggest barriers for local authority planning teams that really slows things down.
“Prioritisation of skills in the strategy is encouraging when employers have been struggling to fill vacancies – as 6 out of 10 East Midlands businesses reported in our latest Quarterly Economic Survey – but while £1.2bn of skills investment sounds like a solution, the breakdown of that spend needs to be seen.
“Eligibility will play a role in how businesses benefit from any supportive policies – cutting energy costs might be great news for a large business that’s granted the saving, but those that don’t will still face high costs, so that wouldn’t be a level playing field.
“With all the investment pledged, we need to see the region fully benefit. Behind every number, we need detail – for example, will supply chains in the East Midlands be drawn on, with any development. With skills investment, how exactly will the promised £1.2bn be broken down? What’s needed now is the critical detail on implementation of the strategy, which must have East Midlands businesses front and centre to enable growth.
“I’d like to thank the many Chamber member businesses in the East Midlands that shared their insight during the government’s open consultation earlier this year to help shape the outcome.”
