Written by George Dietz, ADS Economics and Data Adviser

Following over 100 days in power, this week the Government launched a flurry of new initiatives to kickstart UK economic growth, with the private sector at the centre of the action.

The International Investment Summit, held on 14 October 2024, drew hundreds of business leaders to London. In his keynote speech, the Prime Minister promised to do everything in his power to galvanise growth and made clear to all that “private sector investment is the way we rebuild our country”. The Summit saw announcements of large-scale private capital investments, and the unveiling of the government’s green paper, Invest 2035, on a 10-year Industrial Strategy, alongside the Industrial Strategy Advisory Council.

ADS Industries as Growth Driving Sectors 

The Business and Trade Secretary emphasised the importance of bolstering support for key high-productivity, high-export sectors, of which eight will receive particular attention. Aerospace’s inclusion under the Advanced Manufacturing umbrella and defence’s role as a priority growth driving sector, are two major milestones for ADS. With key deliverables on the Industrial Strategy only to be revealed in tandem with the multi-year Spending Review in Spring 2025, the full effect and focus of the government will become clearer in the first half of next year.

ADS will respond to the public consultation, which is running on a slightly condensed timeline. Please reach out to nathan.mathiot@adsgroup.org.uk if you have any questions or would like to get involved in this process.

This week also saw the establishment of the National Wealth Fund, operating as an expansion of the UK Infrastructure Bank, which will still be based in Leeds. We are encouraged to see the government foster regional growth, and we were particularly delighted to catch up with so many engaged members at our ADS Engage Yorkshire Event in Leeds on Wednesday, highlighting the expertise and talent in our sectors across the UK. We are also pleased to see a scaled-up Office for Investment (OFI) led by Poppy Gustafsson, and with active backing from Number 10, HM Treasury and the Department of Business and Trade.

What’s next 

As we await the Autumn Budget on 30 October, uncertainties persist for businesses in our sectors. At the Investment Summit itself, business leaders have been concerned about potential tax increases. To alleviate fears and ensure a pro-business environment. The government has promised to cap Corporation Tax at 25%, continue full expensing and the £1m annual investment allowance, and guarantee no negative changes to rates for R&D relief, with a Corporate Tax Roadmap to be showcased at the Chancellor’s inaugural budget. It remains to be seen how this week of significant government support for ADS sectors will be remembered in the light of major fiscal shifts at the end of this month, and by Spring 2025.