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EU Industry Policy

The UK government current’s approach to industrial policy is largely formed in terms of creating an institutional framework that allows businesses to prosper, and workers and households to improve steadily their living standards. Promoting effective competition, flexibility in labour and capital markets, creating a legal system which gives confidence and trust to market participants, and introducing a stable macroeconomic framework are all components of this institutional framework.

Other aspects of UK policy concentrate on the advance and commercial application of scientific knowledge, and investment in physical infrastructure, education and health. Innovation policies seek to balance the benefits of intellectual property protection with facilitating the widespread exploitation of new knowledge through, among other things, easing barriers to the widespread dissemination and adoption of ideas.

Underpinning this approach is a presumption that, as a whole, the effective operations of markets are a better way of bringing about improvements to businesses efficiency and the most economically beneficial allocation of capital, knowledge and employment. Government does have a role, however, where market failures arise, for example, in the provision of public goods, and overcoming externalities through policies on science, skills, innovation and regulation.

Responsibility for the wide number of ‘industry policy’ themes is spread across Whitehall Departments. BERR works hard with all of them to ensure that the interests and concerns of business are reflected in policy development.

The European Union

We also work closely with the European Commission and other Member States to address from the European perspective issues that are confronting all industrialised countries - the challenges laid down by globalisation, including for example the intense competition from growing economies like China and India; the greater fragmentation and wider dispersion of supply chains and increased pressures on industrial and local adjustment in relation to our international competitiveness; and of course, energy and climate change.

Actions under the EU Policy agenda:

• A commitment to focus on economic growth and employment.
• Shaping policies to allow businesses to create more and better jobs implemented in a way that balances and mutually reinforce economic, environmental and social objectives.
• A new integrated approach aimed at improving the coherence between different policy dimensions and increasing their relevance to business.
• Bringing business directly into the process through the establishment of ‘High Level Groups’.

These groups bring together members of the various European Commission Directorates General, Member State Governments and relevant stakeholders from industry, consumers/civil society, trade unions, NGOs and regulators and are mandated to provide advice to policy makers at Community and national levels, industry and civil society organizations in the most appropriate format on a range of issues effecting European industrial competitiveness.

BERR Contact for EU Industry Policy guidance:

Mike Barbier (Head of EU Industry Policy)
Tel: 020 7215 6123
E-mail: michael.barbier@berr.gsi.gov.uk

Adam Richards
Tel: 020 7215 2956
E-mail: adam.richards@berr.gsi.gov.uk