PwC's Chief Economist comments on the UK Industrial Strategy

Commenting on the UK’s Modern Industrial Strategy, published today, PwC UK's Chief Economist, Barret Kupelian, said: 

“Today the Government unveiled a ten year whole of government industrial strategy, an important milestone that focuses policy and funding on the eight priority sectors. 

“At a time of heightened economic uncertainty, Britain is replacing policy fog with policy focus, underlining the Government’s commitment to making economic policy more predictable. A credible industrial strategy means businesses can plan to grow with confidence, not just chase the next short-term cycle or worry about the next shock. 

“Can this strategy end the UK's long term productivity stagnation? It certainly could. Evidence from advanced economies shows that every one percentage point of GDP devoted to industrial policy delivers, on average, a 0.25 per cent lift in labour productivity in that sector within two years. 

“Nonetheless, there is still a mountain to climb: the UK still faces a cumulative capital gap of around £2 trillion compared with our peers. But productivity is not made in a day. It is built brick by brick and this strategy lays the foundations for tomorrow’s growth.”