The strategy, which sets out a ten-year plan to boost investment and create good skilled jobs, was recently unveiled.
As part of the initiative the Government said it would make it easier and simpler for companies to do business.
It said this would be done by tackling high industrial electricity costs, promoting free and fair trade, expanding access to finance, driving innovation and reducing regulatory burdens.
Uneven distribution
However, trade association UKHospitality (UKH) said that social mobility and job creation will suffer, as 70% of the economy was overlooked, including hospitality.
UKH chief executive Kate Nicholls said: “This is not an industrial strategy that will deliver growth equally across the UK. In fact, by ignoring 70% of the economy it is at odds with the Government’s ambition to create jobs and help people into work.
“Once again, growth will be distributed unevenly and centred around small industrial clusters that have high barriers to access – hardly a recipe for driving social mobility.
“We were desperate to see a plan for hospitality and the high street, which together employs over seven million people. We were disappointed.”
Nicholls added that critical foundational sectors of the economy, like hospitality, leisure and tourism, are central to creating jobs, yet overlooked.
She continued: “This is the same approach that led to this year’s employer NICs changes hitting part-time, flexible and accessible jobs hardest, while protecting jobs in the industrial strategy.
“Instead, this strategy will once again leave behind the towns, coastal communities and rural areas which are most in need of a real strategy for growth.”
Energy bills
From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals.
“Lowering energy bills for certain sectors is clear recognition from the Government that the energy market is broken and a major barrier to investment,” Nicholls added.
In addition, Anna Leach, chief economist at the Institute of Directors, said that this approach was “encouraging” but raised concerns.
Meanwhile, business finance expert and managing director of Aurora Capital George Holmes said the strategy was welcome news for large-scale manufacturers, but that the vast majority of small businesses won’t see a penny.
He said: “For smaller firms also battling high bills, long waits for grid connections and squeezed margins, it’s hard to feel like this is a strategy for them.
“These businesses are vital to local economies and supply chains across the country, yet they’ve been left waiting for the trickle-down. The government talks about partnership with business, but the detail shows that focus remains heavily on large corporations.”
