United Kingdom unveils new Industrial Strategy

AI investment CAGR 2010 2016

Construction wins government backing for productivity boost

And it also called on business to allow people to work more flexibly to enable them to look after elderly relatives.

On Monday, the UK Government unveiled its Industrial Strategy, a new plan to boost the economy by embracing new technological opportunities and prioritising clean growth opportunities.

"As we leave the European Union we need to raise our game at home and on the world stage", business minister Greg Clark announced in his 255-page consultation paper.

Over the next three years, £725 million will be put towards the Industrial Strategy Challenge Fund to help make the United Kingdom the most innovative nation in the world by 2030.

The money includes £170million towards building houses that are more affordable and use less energy, and £210million to improve early diagnosis of illnesses and development of "precision medicine" for patients.

It said it would do this "in order to be able to progressively drive up the earning power of people employed in these industries and enhance our national productivity". The CPA strongly encourages government to ensure manufacturers and distributors are invited to make a more significant contribution to the CLC, and that ultimately what has been announced is not harmed by the Brexit transition period and the UK's post-Referendum deal once it has been finalised.

Construction has landed one of the latest round of sector deals worth up to £250m to the industry.

The document sets out four "grand challenges" that the government, working with business, academia, and society at large, has committed to overcoming in the coming years.

To mark the launch of the industrial strategy, United States pharmaceutical giant Merck pledged to establish a new hi-tech hub in Britain, creating 950 jobs.

Meanwhile, Qiagen said its plans to develop a genomics and diagnostics campus in Manchester, northern England, had the potential to create 800 jobs.

Mr Clark said Britain has some of the world's best universities and research institutions, as well as leading companies in sectors ranging from advanced manufacturing to financial services, life sciences and creative industries.

David Willetts, a former Conservative minister and now chair of the Resolution Foundation think tank, said the strategy needed to concentrate more on lower paying sectors.

Monday's strategy re-iterates the government's target of increasing investment in research and development from 1.7 percent of GDP to the OECD average of 2.4 percent.

"It will help create the conditions where successful businesses can emerge and grow and support these businesses in seizing the big opportunities of our time, such as artificial intelligence and big data, whilst also making sure our young people have the skills to take on the high-paid, high-skilled jobs this creates". "It will ensure Britain continues to be at the forefront of innovation and represents a huge vote of confidence in our Industrial Strategy".

"Businesses will now want to see clear evidence that this Industrial Strategy can be implemented over the long term as the United Kingdom has demonstrated time and again that it is not good at sustaining long term policies".

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