Mark Casci: The Government must put its money where its mouth is on industrial strategy

Within hours of taking the oath of office, any hope that Donald Trump's taking up residency in the White House will herald a return to the Thatcher-Reagan days of the 1980s was swept away.
Rred hot metal being moved across the heavy forge at the Forgemasters Works in SheffieldRred hot metal being moved across the heavy forge at the Forgemasters Works in Sheffield
Rred hot metal being moved across the heavy forge at the Forgemasters Works in Sheffield

Yes, he will this week welcome Prime Minister Theresa May as the first foreign leader to visit the country since his being sworn in. But other than sharing the same political parties and genders as the leaders they are being compared to, the difference between the two pairs could not be more stark on their economic values.

It with no shortage of irony that Mrs May should unveil one of the most internationalist industrial policies from a UK Government in generations in the week when she prepares to visit Trump, who has himself this week upbraided executives who outsource their manufacturing to foreign shores and last night signed an executive order to scrap the Trans-Pacific Partnership. These measures would have been complete anathema to the avowed free market champions that were Reagan and Thatcher.

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However time stands still for no one and both leaders need to respond to the challenges they see in their economies. Gone are the days when leaders had the luxury of ideology informing policy. In this new world of turmoil being the “new normal”, the need for stability in a rapidly-evolving economic and political reality supersedes the textbooks.

Margaret Thatcher.Margaret Thatcher.
Margaret Thatcher.

The Government will be, in Mrs May’s own words, be “stepping up into a new active role” as it targets boosting a sluggish economy through upgrading skills and infrastructure.

It is quite literally news to the ears of those who occupy senior positions in Yorkshire economy who have been relentlessly campaigning for Government to grasp the nettle of driving the country’s industry for several years now.

For years now our business leaders have continually bemoaned the woeful state of our transport infrastructure and the skills gap as being massively prohibitive to economic growth.

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More widely, steps to address faltering productivity will also be welcomed as a positive step towards tackling regional inequality.

Can Theresa May tame Donald Trump?Can Theresa May tame Donald Trump?
Can Theresa May tame Donald Trump?

As John Williams, who heads the Association of Chartered Certified Accountants, said: “The need to address the skills gap is more critical than ever.”

This view was mirrored locally, with Sir Nigel Knowles, chairman of the Sheffield City Region, welcoming the national focus on areas where his city region has strengths such as industrial digitisation and civil nuclear sectors. His counterpart at the city’s chamber of commerce, Richard Wright, welcomed the “one size fits all” approach to the UK’s varying economic needs being ditched.

It is impossible to argue against any of this. I will back anything that will protect and enhance our region’s economy with all I have.

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But this commitment must now be seen through by the Government, backed up with sufficient financial backing.

Margaret Thatcher.Margaret Thatcher.
Margaret Thatcher.

And on this score, cracks are emerging already.

The announcement pledged “a £56m cash boost for Northern Powerhouse, with £156.9m of funding for Yorkshire and the Humber to create jobs, support businesses and encourage growth”.

However, as Mrs May has already been forced to concede, much of this cash was announced in the Autumn Statement. While skill deficiencies plague parts of our economy, we are no mugs and will not be appeased with rehashed announcements.

This new commitment to an industrial strategy shows the Government is listening.

Can Theresa May tame Donald Trump?Can Theresa May tame Donald Trump?
Can Theresa May tame Donald Trump?
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This is to be applauded and sets it apart from previous administrations. However it is not enough to listen, it must also act.

And if there is one thing Thatcher and Reagan were good act, whether you agreed with them or not, it was making good on what they said.