Government urged to improve industry support strategy

Government urged to improve support for UK industries

The government needs to improve how it supports key industries to make the most of its forthcoming Industrial Strategy, according to a new report from the National Audit Office (NAO). The findings could have significant implications for the UK’s construction sector, including concrete product and equipment manufacturers, and infrastructure development.

The NAO report highlights that the Department for Business and Trade (DBT) lacks a clear view of how much government money is spent on business support. This makes it harder to allocate resources strategically and prioritise industries effectively. DBT also struggles to influence other government departments to make policy changes that would benefit businesses.

Gareth Davies, head of the NAO, said: “DBT was created to provide a ‘front door’ to the UK’s key industries, supporting government’s priority mission of growing the economy. It has made early headway and now needs to build on its approach to supporting industry and make transparent, informed decisions about where best to deploy its resources.”

The government announced the new Industrial Strategy in October 2024 and identified eight growth-driving sectors, including advanced manufacturing and clean energy, which are closely linked to the construction sector. Improved government support could benefit concrete manufacturers and construction firms, particularly in areas such as sustainable building materials and modular construction.

The NAO recommends that DBT improve how it tracks industry support spending and make better use of evidence when deciding where to allocate funding. It also calls for clearer decision-making processes and better coordination between departments to help businesses access support more effectively.

The full NAO report is due to be published tomorrow (12 March).