Transformative guidance needed, warns industry
A new paper from the manufacturers’ organisation, EEF, is urging the government to set out clear guidance on the rules of engagement for industry sector deals ahead of the release of the Industrial Strategy White Paper, to minimise the impact of Brexit on supply chains.
In addition to recommending the guidance on the rules of engagement, the paper titled ‘Unlocking business ambition through an improved Sector Deal Framework’, sets out the steps required by the sectors to demonstrate leadership and ensure engagement with the government.
Focusing on sector specific challenges has been highlighted by manufacturers as a way that can assist in securing positive outcomes. In a recently released EEF survey, manufacturers revealed a desire for higher levels of productivity (54%), increased exports (33%) and increased investment in training (31%) to be the outcomes that sector deals target. These should be easily achievable if government brings forward detailed guidance on the rules of engagement, notes EEF.
However, the organisation also warns that if the government fails to provide this guidance there could be a significant amount of time wasted by various sectors when they develop deals that collapse as they do not meet government expectations.
“Industry sector deals have the potential to make a significant and positive contribution to a post-Brexit industrial strategy. However, the government’s Green Paper left a number of questions unanswered around the process and timescales for deals which could hold back companies from engaging,” commented, Chris Richards, head of Business Environment Policy at EEF. “Guidance on the role of different departments and what realistically they can and cannot do will support this process of engagement and help companies form rational expectations. There are urgent questions that need to be answered in guidance to support the ambitions of different industrial sectors.”
According to EEF, government guidance must include detail on:
- Clarity on the sign-off process for Deals. This would enable better industry-government engagement and allow sectors the time to organise themselves and come up with robust proposals for a deal.
- Transparency around the criteria on which different bids will be selected. Transparency on the criteria to be used is essential to prove the new approach will not be confined to traditional industries and that sectors based on emerging technologies will have the confidence to develop deals.
- The policy areas which are out of scope. Given deals may go beyond the Department for Business, Energy and Industrial Strategy, it will be essential to specify which government departments will be involved in engaging with sectors and delivering targeted interventions, as well as what policy areas may be out of scope.