Thread
And we're off!
Full house here at @unherd for our kickoff Future of Conservatism event series, discussing the UK economy & industrial strategy in a fragmenting world. 💥
@ukonward
Full house here at @unherd for our kickoff Future of Conservatism event series, discussing the UK economy & industrial strategy in a fragmenting world. 💥
@ukonward
After years of saying we need to have an industrial strategy, the question is now what would a UK strategy fit for the modern world look like? Says @NJ_Timothy
East Asian prosperity has been based on active industrial intervention - Taiwan was until recently a middle income country, says @RichardALJones
3/4 of the UK is below average in productivity - the UK's main economic challenge, says @RichardALJones
Productivity gains are where growth comes from.
"Potato chips, computer chips - what's the difference?" asked a Bush adviser. We can see now this indifference has clearly not worked in delivering growth-boosting productivity.
"Potato chips, computer chips - what's the difference?" asked a Bush adviser. We can see now this indifference has clearly not worked in delivering growth-boosting productivity.
It was not the best policy to abandon the BEIS-led industrial strategy. "No industrial strategy should be run by the Treasury", argues @RichardALJones
Levelling up is about raising the productivity of the West Midlands, Manchester, Glasgow, Teesside. - that's what we have to achieve, & these must develop place based industries...
"The chemicals industry is one of the most underestimated part of the UK's industrial base".
"The chemicals industry is one of the most underestimated part of the UK's industrial base".
Innovation accelerators were a good thing in the Levelling Up White paper, but it's simply not enough money, says @RichardALJones
The US Chips Act is $10bn of funding for the most left behind local economies.
The US Chips Act is $10bn of funding for the most left behind local economies.
There is a huge acceleration happening in how AI will impact our lives - & this is underrestimated by Government, says @citysamuel.
Along with the change there will be "huge dangers", including #ChatGPT's "hallucinations" - effectively untruths.
Along with the change there will be "huge dangers", including #ChatGPT's "hallucinations" - effectively untruths.
We will need "effective regulation to protect us from the potential malign effects" - current regulation is either unhelpful or obstructionist, says @CitySamuel.
Our regime is "unfit for the tools that are coming out way".
Our regime is "unfit for the tools that are coming out way".
"Outside the EU we have an opportunity" to lead the way in regulation of new AI; instead we are wasting political time on other priorities.
"We have chronically underinvested" in energy, says @CitySamuel.
"One of the best ways you could decarbonise the world would be to switch from coal or charcoal to gas."
There are huge discoveries of gas in the Med that could easily replace Russian gas.
"One of the best ways you could decarbonise the world would be to switch from coal or charcoal to gas."
There are huge discoveries of gas in the Med that could easily replace Russian gas.
We have allowed the deindustrialization of Europe partly through failed energy policy, argues @CitySamuel. A good industrial strategy must look to reindustrialization.
Tees Valley Mayor @BenHouchen says that too often Government "doesn't talk the language of business".
There are opportunities to create new markets - offshore wind is a key example of state-led opportunity created for private business, he argues.
There are opportunities to create new markets - offshore wind is a key example of state-led opportunity created for private business, he argues.
Failure to grab supply chains is key to UK public policy failure - most of the supply chain for offshore wind markets lies outside the UK, says @BenHouchen.
...the costs of setting up manufacturing in the UK is too high. "We didn't have the confidence to bear our teeth".
...the costs of setting up manufacturing in the UK is too high. "We didn't have the confidence to bear our teeth".
Teesside produced more than 50% of all the hydrogen in the UK. We need funding & certainty offered to business.
Businesses are setting up in North America and exporting green hydrogen to the UK.
Businesses are setting up in North America and exporting green hydrogen to the UK.
We are a world leader in nuclear, but we risk offshoring supply chains if other economies such as the EU offer incentives & subsidies, says @BenHouchen.
Jobs, supply chains and export potential are not taken into enough consideration by UK policymakers.
Jobs, supply chains and export potential are not taken into enough consideration by UK policymakers.
Industrial Strategy isn't only about economics. It's about pride of place, too.
"Local communities, community cohesion and patriotism" all benefit from local manufacturing industry that contributes to UK Plc, says @BenHouchen.
"Local communities, community cohesion and patriotism" all benefit from local manufacturing industry that contributes to UK Plc, says @BenHouchen.
"As a country we seem very purist about ideological positions around global free trade and non-intervention", suggests panel Chair @NJ_Timothy
The UK suffers from a failure of "common sense" when it comes to supporting UK businesses through funds, grants & incentives - and loses out as a result, says @BenHouchen.
@margot_james_ says tax breaks for industry are costly, but there is a "fairness and objectivity" to them.
Britain is the first country to allow hands free autonomous driving on motorways - an example of how sensible & smart regulation can form part of an effective strategy - but we lag behind on the "micromonility side, says @margot_james_
Training and skills are also key - the Apprenticeship Levy could have been an excellent intervention but hasn't worked, says @margot_james_
...Many successful UK companies such as #Rollsroyce have succeeded domestically due to subsidies...
50,000 more people are employed in AI and the sector has attracted £19bn of private sector investment as a result of proper support & incentives...
The Chancellor's industrial strategic announcements so far have been encouraging but more is needed.
The UK is a leading hub for R&D for batteries - especially at Warwick University, with key advantages over int'l competitors, says @margot_james_
The UK is a leading hub for R&D for batteries - especially at Warwick University, with key advantages over int'l competitors, says @margot_james_
Sometimes govt interventions are needed to mitigate the impact of earlier ones - energy intensive manufacturers have been having to operate "with one hand tied behind their back".
We must level the playing field with international competitors, says @margot_james_ @wmgwarwick
We must level the playing field with international competitors, says @margot_james_ @wmgwarwick
The High Value Manufacturing Catapult has achieved a lot but needs more funding and support, says @margot_james_
Renewables may "look very cheap" but are not "forced to cover the cost of their intermittency", says @CitySamuel.
How do we do subsidies not as in the '70s, but in an effective framework "to overcome the capital investment barrier"?
How do we do subsidies not as in the '70s, but in an effective framework "to overcome the capital investment barrier"?
China can plan for 10, 20 or more years ahead as it doesn't have to worry about elections and changes of government.
How can we make sure we are able to take a long term strategic approach? Asks @BenHouchen
How can we make sure we are able to take a long term strategic approach? Asks @BenHouchen
The Government admitting we need a strategy wouldn't mean saying we don't believe in the free market, but it would mean we as a country could do things competently, says @CitySamuel
We have massively underestimated the importance of ownership in industry - "ownership and control matter", says @RichardALJones 
Has there been "a shift in conservative philosophy" over economic intervention? Asks one of our audience guests...🤔
"The Conservative Party has never had a pure ideology", says @BenHouchen. Voters care about outcomes, not ideology or process.
"The Conservative Party has never had a pure ideology", says @BenHouchen. Voters care about outcomes, not ideology or process.
"There are some in the Conservative Party who want to be purists, but that experiment has been tried, and it's failed" - says @BenHouchen
@Margot_james_ says Thatcherism was the right response to a particular set of circumstances in the 1970s.
However, this is "not a blueprint for all circumstances in the future".
However, this is "not a blueprint for all circumstances in the future".
