Recently, Sarah Smith MP, Keir Starmer’s ‘Opportunity Mission Champion’, led a broad ranging Industry Forum roundtable on ‘Creating Opportunity in the UK.’ The meeting was hosted by the Chartered Insurance Institute and Industry Forum members and guests were welcomed to the CII City offices in the iconic Walkie Talkie building, by Katherine Kennett, Policy and Public Affairs Manager at CII. The discussion covered the broad ambitions of the Labour government to reverse the stifling of opportunity caused by economic stagnation and austerity policies dating back to the 2008 banking crash. To help achieve this, a primary government mission is to create a virtuous circle of more opportunity leading to increased prosperity and the ability to fund investment in education, training, infrastructure, healthcare, technology and more. The hurdles facing the complete economic turnaround needed are high, bearing in mind the poor financial condition of the economy and the challenging international security situation. Meanwhile, there are inevitable tensions between urgent short-term needs in such as helping young people not in education, employment or training, improving healthcare, social care, and housing, and longer-term investment in areas like early years education and the transition to renewable energy. Nevertheless, sticking to fundamentals including clear objectives, a focus on improving training and skills, and long-term planning is the only approach which can succeed, and is also the approach taken by most successful companies.

The Industry Forum was delighted to welcome Labour’s National Growth Champion, Daniel Tomlinson, to lead a roundtable on ‘Delivering the Growth Mission.’ The meeting was hosted by the Railway Industry Association and introduced by their Policy Director, Robert Cook. Dan Tomlinson, an economist who has worked at the Resolution Foundation and in HM Treasury, outlined the severe structural economic problems that need to be tackled to restore growth in a stagnant UK economy. He also explained the important role of the backbench ‘mission champions:’ They will act as communications bridges on key issues to explain government plans and actions and relay back comments and suggestions. With plenty of comment and ideas from the wide range of UK and international businesses present, the discussion covered how the government and companies can work together to raise investment by the private and public sectors and address bottlenecks in the economy, particularly in transport and housing. There was also discussion of the need for the Civil Service to improve its commercial skills in areas such as procurement, project appraisal and ensuring value for money. As in all turnaround situations, a key question is where to make changes and allocate resources which will start to fuel the recovery. This will be made considerably more difficult by the urgent emerging defence needs!

Rachel Reeves’ budget on the 30th October, promises to be a turning point for UK economic fortunes. To discuss, not just the direct fiscal implications, but also the real-world business opportunities and pinch points arising, the Industry Forum is convening a lunchtime roundtable the following day. We are inviting economists, business people and non-Treasury politicians for a free-ranging discussion at a lunchtime roundtable. The conclusions will be published without individual attribution, for wider discussion.

Panellists:

Will Hutton - Political economist, author and journalist
Sarah Howard - CEO, British Chambers of Commerce
Vicky Pryce - Chief Economic Adviser, CEBR
Andrew Smith - Chief Economist, Industry Forum

The importance of investment in physics R&D was promoted in a fringe IOP/The Industry Forum meeting at the Labour party conference. The Chair, Anjana Ahuja, highlighted that physics-based industries contribute 11% to UK GDP and 10% to employment. Covering all the bases, the panel included Peter Stephens of Arm, a true UK tech success story, Robert Lamb of the IOP and the research community, Professor of Physics Matthew Brookes from Nottingham University and Jo Slota-Newson from the VC sector. Chi Onwurah MP, newly elected Chair of the Digital, Innovation and Technology Select Committee gave her endorsement of the importance of physics.

At the Labour Liverpool conference, The Industry Forum partnered with Europe's largest software company, SAP for a fringe meeting on ‘The reality of AI in business’. Our panel was packed with real experts. Chi Onwurah MP, the new chair of the Digital, Innovation and Technology Select committee, and new MPs Louise Jones MP who has a military and intelligence background and Steve Yemm MP who has wide experience in the life sciences sector, represented parliamentary legislators. Chris Francis, Director of Government Affairs, SAP UK, Technology Policy and Standards Expert and James Johns, Head of Corporate Affairs for Workday represented the digital tech sector. It was clear from the wide-ranging discussion that AI is not one thing but a pervasive set of applications, and that its impact across society and business is set to grow rapidly. We can all be grateful that the new House of Commons has been strengthened in its understanding of AI and can talk on equal terms with the companies using AI and bringing AI products to market.

Recently The Industry Forum welcomed Sir John Armitt, Chair of the National Infrastructure Commission, to lead a roundtable on the subject of ‘HS2 cancellation fallout.’ The Battersea Power Station Development Company hosted the meeting and their CEO, Don O’Sullivan, welcomed guests. The meeting was chaired by Andrew Smith, Chief Economic Adviser to the Industry Forum. Due to the recent change of government, no final and costed replanning has been completed. Possibly 30% of the original budget can be saved but there are consequences: plan changes and delays have big impacts in losing key skilled staff on projects and discouraging private sector confidence in providing finance. An interesting fact that emerged was that most infrastructure projects come in within 10% of their budgets; it’s the big ones, subject to political scope changes and inconsistency, that suffer the headline cost overruns. These are lessons which will apply to new large projects such as building a further Thames crossing. They will undoubtedly be considered as the government prepares its revised infrastructure investment plan due in Spring 2025. Infrastructure improvement (physical and digital) and capital projects funding are key factors that will affect the ability of the UK to meet the government’s vital growth objectives. The Industry Forum looks forward to convening more meetings to tease out the inevitable obstacles to change and how to overcome them.