‘Everyday economy’ neglected by government’s industrial strategy, MPs warn

Retail, hospitality and steel sectors are being neglected by the government’s industrial strategy, a group of MPs have warned.

A report published today by the Business, Energy and Industrial Strategy Committee is calling on ministers to publish an “action plan” on how they will boost productivity in the ‘everyday economy’.

The MPs also demanded the government listen closely to the steel industry to help deliver the support that sector needs in the wake of global pressures on the industry.

The government vowed to examine the MPs’ recommendations closely before issuing a full response.

Launching the report, committee chair Rachel Reeves said: “The Government’s Industrial Strategy isn’t doing enough for the ‘everyday economy’, in sectors such as retail and hospitality where millions of Brits are employed.

“The Government’s ‘open door’ offer to industry isn’t being delivered upon in these neglected sectors and the Government needs to be much clearer about the criteria for sector deals and engage more actively and decisively to make these happen.

“On steel, the Government should get back to the table and talk to the industry to get a sector deal done. Having made the steel industry jump through hoops in efforts to get a deal, the Government should now deliver on its side of the bargain.”

Helen Dickinson, chief executive of the British Retail Consortium, welcomed the call for “positive action” from the committee, and warned: “If Government fails to act, the consequences for communities across the country may be stark.”

Labour MP Stephen Kinnock, who represents one of the biggest steelworks in the world in his Aberavon constituency in South Wales, accused the government of playing “fast and loose” with the future of the UK steel industry.

He told City AM: “This new report once again reflects how little the UK government is doing to support the steel sector. For instance, we've seen no action on electricity costs – British prices are 51% higher than in Germany and 110% higher than in France – despite UK Steel setting out a number of promising proposals.

"We also recently learnt that the Government purchases less than 50% of its steel from the UK."

A spokesperson for the department of Business, Energy and Industrial Strategy said: “We welcome the committee’s chair recognising that sector deals have the ‘potential to make an important contribution to boosting the nation's lagging productivity, improving competitiveness, and delivering growth to all parts of the UK’. We will consider the Select Committee’s findings, and will respond in due course.”