John Allan's group of business leaders believes the Government should target support at certain British industries post-Covid.
Source - Daily telegraph - 28/04/21
The UK should use its post-Brexit freedoms to create domestic supply chains that rely less on foreign companies, a group of senior business leaders has said.
The Covid Recovery Commission, headed up by Tesco chairman John Allan, said the Government has the chance to build up cutting-edge industries and create new export opportunities.
It proposed using state procurement to create a Great British Supply Chain, in an attempt to boost certain industries, create jobs and give the UK a headstart on other nations.
This could include decarbonising public sector buildings, rolling out 5G connectivity in the NHS, and investing in modern methods of construction including off-site manufacture.
Supporting these industries could be a crucial way for the economy to reinvent itself and rebound post Brexit, Mr Allan said, while spreading prosperity nationwide as the private sector makes use of the extra capacity to follow suit, for instance by decarbonising homes.
"We are at a very very propitious moment now. We have got Brexit behind us so all of the controversy around that is irrelevant and we have some freedom of manoeuvre because of that. We have a national consensus on the necessity to get to net zero. The Government and opposition realise to do that requires a long-term plan," he said.
"You bring together this consensus, the changing role of businesses which are facing up to their responsibilities, the Government starting with a freer hand than perhaps previous Governments have had, and if it can all be brought together there is a fantastic opportunity for the UK to really motor for the next 10 or 15 years."
This should be combined with training, infrastructure and local economic plans "to support the creation of new globally competitive industry clusters in every part of the UK by 2030," the commission said, drawing together businesses, universities and different levels of Government.
Covid has shaken up the global economy so much, reviving "economic nationalism" which threatens international supply chains, that Britain could even use a lead in technology and innovation to revitalise its manufacturing industries, Mr Allan said.
"If we strengthen our domestic supply chains and if we re-stimulate manufacturing for the domestic market, you can potentially service export markets as well," he said.
"It may sound like turning the clock back, but it is necessary. There are great advantages if you have short domestic supply chains - you can be much more flexible and respond more quickly to changes in demand."
The commission also recommended the development of a "prosperity scorecard" to set goals for levelling up, allowing governments, local authorities and voters to keep a track of GDP, health, education and other measures of progress in each area.
A Government spokesperson said: "Last year we launched new measures to promote new jobs and skills, tackle climate change and level up the UK, through procurement.
"We will soon set out ways in which potential suppliers should also support the Government’s wider priorities, such as Covid recovery, tackling inequality and helping the environment."
Comments
Post a Comment