This week saw politicos, policy experts and business leaders descend on Liverpool for the Labour Party conference, which wrapped up on Wednesday (25 September).
Grace Thompson, UK public affairs lead at the Charted Institute of Export & International Trade, attended to represent members and offer trade insights from the party’s first conference event in government.
As the party gets down to the business of governing and the “optimism” of last year’s pre-victory conference hardens into a “pragmatic” focus on policy questions, Thompson notes that:
“Every session or speech essentially boiled down to ‘how do we make progress and build for long-term success in area X or Y with economic constraints as they are?"
Industrial strategy – ‘beyond chimney stacks’
Perhaps the biggest takeaway from the conference is that the government’s industrial strategy is becoming much clearer ahead of the Autumn Budget next month (30 October), although without trade’s role yet coming into view.
Thompson says that Reeves' speech indicated we can expect a focus on “long-term growth in manufacturing and service sectors, unlocking investment, job creation, breaking down barriers to regional growth and meeting 2030 net zero targets”.
While the emphasis on manufacturing attracted attention, commentators including the Chartered Institute’s director general, Marco Forgione, cautioned against the idea that industrial strategy should conjure up the image of “smoking chimney stacks”.
Speaking to CityAM, he said that while industrial manufacturing will always be a “core strength” of the UK, a new Industrial Strategy should incorporate renewable energy, technology and high-value manufacturing”.
This sentiment was echoed by Lord McNicol at the Chartered Institute’s fringe event with the New Statesman, when he emphasised the role services and emerging technology would need to play in building industrial strength.
However, Thompson notes that a question mark remains over how this new industrial strategy will intersect with the government’s trade strategy.
Regional empowerment and boosting investment
The need to remove regional barriers to growth was present throughout conference sessions, with Thompson noting that the need for greater regional empowerment and investment is becoming more widely accepted.
“There is a growing appreciation that UK economic success will only happen when devolved nations and regions are properly supported to grow and thrive economically.
“Many panel sessions advocated for the need for greater devolution and mayoral powers, in particular.”
Notable examples included Secretary of State for Northern Ireland, Hilary Benn, discussing the importance of city deals to fostering economic growth, such as those for Belfast and Derry.
He added that implementing the Windsor Framework – protecting Northern Ireland’s place in the UK market, while maintaining an open border on the Island of Ireland – will be vital.
Thompson also highlighted an IPPR panel session on “supercharging” public and private investment.
Panelist Heather Boushey, chief economist for the president’s Invest in America Cabinet, offered lessons learned from the Biden administration’s Inflation Reduction Act, while UCL’s Institute for Innovation and Public Purpose founding director, Marianna Mazzucato, argued for strategic government investment designed to boost growth expectations, which could in turn stimulate private sector investment.
Entrepreneurs – ‘our lifeblood’
Support for entrepreneurs was prominent throughout conference and Thompson was pleased to see that the role trade can play in growing a small was being considered.
“It was encouraging to see the role of entrepreneurs – and the struggles they face – acknowledged throughout the conference.
“Reeves acknowledged that entrepreneurs often struggled to access finance and exporters, in particular, get tied up in ‘red tape.’”
She adds that Reeves pre-conference support for the Invest in Women Taskforce, which supports female entrepreneurs, was “an encouraging sign”, especially after a new report revealed that the number of female founders who received private equity investment this year had dropped.
Support for entrepreneurs from creative industries was also at the forefront, with sessions on how to break down barriers held at the conference’s Creative UK Pavilion.
Thompson highlights the role of creatives in trade, with new research from the Creative Industries Policy and Evidence Centre finding that 14% of all UK services exports in 2021 came from the sector.
These findings should encourage policymakers to push for more digital provision within new and existing trade agreements, according to Newcastle University Business School’s Dr Sara Maioli, a senior lecturer in economics.
Engagement with the government on these issues has never been more important, with the UK at a pivotal point in considering its strategy on trade and investment going forward. To feed through any inputs on what you would like to see in the future Industrial Strategy, please email publicaffairs@export.org.uk