The Industrial Strategy – the latest government strategy announcement impacting the built environment–long anticipated Industrial Strategy

Written by APS Deputy Chief Executive Officer, Sofie Hooper.

On the back of the Comprehensive Spending Review and the 10 Year Infrastructure Strategy publication, Government published its Industrial Strategy- it’s overarching plan for Growth on 23rd June.

While the UK's Modern Industrial Strategy recognises the crucial role of the built environment in achieving economic growth and addressing "Grand Challenges", it doesn’t list it as once of the eight growth sectors it seeks to promote. While not surprising, it’s still disappointing.

The Strategy sets out a 10-year plan to significantly increase business investment in 8 growth-driving sectors, by making it quicker and easier for businesses to invest and providing them with the certainty and stability needed for long-term investment decisions. One key area focused on reduced electricity costs. For each sector, the specific details of the approach will be set out in separate Sector Plans, of which 5 have already been published, with Life Sciences, Defence and Financial Services to follow.

The eight sectors identified as having the ‘greatest growth potential over the next decade and a critical role to play in supporting economic security and resilience, net zero and regional growth’ are: Advanced Manufacturing, Creative Industries, Clean Energy Industries, Digital and Technologies, Professional and Business Services, Life Sciences, Financial Services and Defence.

Feedback to the Strategy highlights both opportunities and concerns for the construction and property sectors, with a focus on infrastructure, clean energy, and skills development. While some welcome the Strategy's emphasis on these areas, others express disappointment at the lack of explicit focus on the construction sector itself.

Positive feedback and opportunities for the sector:

* Recognition of Built Environment's Importance:

The strategy acknowledges the built environment's role in enabling investment, productivity, and sustainable development, particularly in relation to infrastructure and clean energy.

* Focus on Infrastructure:

Significant infrastructure commitments, such as the £600m Strategic Sites Accelerator and support for regional corridors like the Oxford-Cambridge Arc, are seen as beneficial to the construction industry.

* Emphasis on Clean Energy:

The strategy's focus on Clean Energy Manufacturing and the government's commitment to solar panels and heat pumps in new homes is seen as a positive step for the built environment. A Government Climate Action Plan is due to be published in October.

* Support for SMEs:

The strategy's emphasis on improving support for small and medium-sized enterprises (SMEs), which play a significant role in material production and the construction industry, is welcomed.

* Modernization of Procurement:

Modernizing procurement processes and promoting offsite manufacturing are seen as potential drivers for growth within the construction sector.

* Skills and Technology Training:

Increased investment in skills and technology training, especially in engineering and digital construction, is viewed as crucial for strengthening the workforce. APS recently commented on the need for a coordinated approach to skills development across various policy areas, in a submission to the CIC Inquiry on the 1.5 million housing target.

Negative Feedback:

* Lack of Explicit Focus on Construction:

Given the importance of the built environment as an economic multiplier, it is disappointing to see the sector omitted as a growth sector.

* Barriers Remain:

While the strategy aims to address barriers like high industrial electricity costs, slow planning processes, and fragmented infrastructure investment, some argue that more needs to be done to tackle these issues effectively.

* Need for Impact Assessments:

Good impact assessments to understand the consequences of the strategy for the architecture profession and the wider built environment sector.

While it’s not a surprise that construction was not included from the Strategy (the Initial Green Paper didn’t include it as a sector either), the UK's Modern Industrial Strategy presents both opportunities and challenges for the built environment. While the strategy's focus on infrastructure, clean energy, and skills development is welcomed, there are calls for a more explicit recognition of the construction sector's role and a greater emphasis on addressing existing barriers to growth. A successful implementation of the strategy will require close collaboration between government,

industry, and professional bodies to ensure that the built environment can fully contribute to the UK's economic future.