ICE response to Invest 2035: the UK’s modern industrial strategy

The UK government has committed to creating a new industrial strategy.

Titled ‘Invest 2035’, it focuses on four central missions for the Labour government.

The proposed strategy aims to address economic and environmental challenges and prepare the UK for future opportunities.

The ICE responded to the consultation as an individual organisation and collectively as part of the National Engineering Policy Centre (NEPC).

The ICE’s submission focuses on the following areas:

Certainty is key to prevent a stop-start approach

The industrial strategy must address one of the biggest barriers to investment - lack of certain, stable policy.

A collaborative systems approach must underpin the industrial strategy

The best-designed industrial strategy won’t succeed without enough funds. This is an issue for the government, facing tight budget demands and spending limits.

A systems thinking approach, where government departments work closely with the Treasury around spending plans, will direct money to the right places.

Technologies have important growth potential

Adopting digital technologies in new infrastructure can ensure successful delivery of the industrial strategy and improve future resilience.

However, consistency is needed to prevent a temporary uplift that then fades away.

An industrial strategy cannot cover just one parliamentary term – it must look further ahead to support future infrastructure assets and the new government’s housing ambitions.

The current state of transport infrastructure in the UK is a barrier to investment

Clarity on the strategic role of transport will help change how investment decisions are made.

The focus would shift focus from economics and the benefit-cost ratio (BCR) to wider social benefits.

The ICE has called for a national transport strategy to provide a clear vision and set principles for sustainable road and rail development.

International partnerships can provide important support

Forums such as the ICE-convened Enabling Better Infrastructure (EBI) programme could play an important role.

The programme supports countries with the strategic planning and prioritisation of infrastructure and shares international best practice.

As an existing forum, EBI could be a useful resource for the Department for Business and Trade. It could help in connecting UK organisations across the infrastructure sector with international counterparts.

Transparency is key

Transparency can influence investment decisions, particularly relating to procurement and where spending is directed.

The government should strengthen the requirement for public authorities to disclose details of the subsidies they award on a national database, as part of the UK’s Subsidy Control Act 2022.