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Our consultation reinforced the importance of ve foundations of productivity – the essential attributes of every successful economy.
These are Ideas, People, Infrastructure, Business Environment and Places. Our focus on them responds to the detailed feedback to the Green Paper.
Our ve foundations align to our vision for a transformed economy – a transformation that is already taking place and will accelerate over the course of the coming decades:
Through this process we have also identi ed Grand Challenges which we will set for the UK government and wider economy. These are in response to global forces that will shape our rapidly changing future, and which the UK must embrace to ensure we harness all the opportunities they present. The Grand Challenges commit to:
` put the UK at the forefront of the arti cial intelligence and data revolution;
` maximise the advantages for UK industry of the global shift to clean growth;
` become a world leader in shaping the future of mobility; and
` harness the power of innovation to help meet the needs of an ageing society.
Our foundations and Grand Challenges are set out in the sections that follow. This strategy also refers to a number of policies that will be added to over time to support the foundations and drive the UK’s transformation.
Our ve foundations
the world’s most innovative economy
good jobs and greater earning power for all
a major upgrade to the UK’s infrastructure
the best place to start and grow a business
prosperous communities across the UK
` raise total research and development (R&D) investment to 2.4 per cent of GDP by 2027;
` increase the rate of R&D tax credit to 12 per cent;
` invest £725m in new Industrial Strategy Challenge Fund programmes to capture the value of innovation;
` establish a technical education system that rivals the best in the world to stand alongside our world-class higher education system;
` invest an additional £406m in maths, digital and technical education, helping to address the shortage of science, technology, engineering and maths (STEM) skills;
` create a new National Retraining Scheme that supports people
to re-skill, beginning with a £64m investment for digital and construction training;
` increase the National Productivity Investment Fund to £31bn, supporting investments in transport, housing and digital infrastructure;
` support electric vehicles through £400m charging infrastructure investment and an extra £100m to extend the plug-in car grant;
` boost our digital infrastructure with over £1bn of public investment, including £176m for 5G and £200m for local areas to encourage roll out of full- bre networks;
` launch and roll-out Sector Deals – partnerships between government and industry aiming to increase sector productivity. The rst Sector Deals are in life sciences, construction, arti cial intelligence and the automotive sector;
` drive over £20bn of investment
in innovative and high potential businesses, including through establishing a new £2.5bn Investment Fund, incubated in the British Business Bank;
` launch a review of the actions that could be most effective in improving the productivity and growth of small and medium-sized businesses, including how to address what has been called the ‘long tail’ of lower productivity rms;
Industrial Strategy White Paper Places
` agree Local Industrial Strategies that build on local strengths and deliver on economic opportunities;
` create a new Transforming Cities fund that will provide £1.7bn for intra-city transport. This will fund projects
that drive productivity by improving connections within city regions; and
` provide £42m to pilot a Teacher Development Premium. This will test the impact of a £1000 budget for high-quality professional development for teachers working in areas that have fallen behind.
These policies, alongside the many others set out in this document, are the rst strategic actions of a long-term approach to transform our levels of productivity and our earning power as a nation, as businesses, as places, and as individuals. We are ready to be judged on our performance in implementing them.