Prime Minister Theresa May will use her first regional Cabinet meeting this morning (23 January) to launch proposals for a modern Industrial Strategy to build on Britain’s strengths and tackle its underlying weaknesses to secure a future as a competitive, global nation.

At the heart of the Strategy green paper published today is an offer to businesses to strike new ‘Sector Deals’, driven by the interests of firms and the people they employ, to address sector-specific challenges and opportunities. As part of the deals government will be prepared to offer a range of support, including addressing regulatory barriers to innovation and growth, looking at how we can use trade and investment deals to increase exports, or supporting the creation of new institutions to provide leadership, support innovation or boost skills.

The Industrial Strategy is a vital part of the Plan for Britain set out by the Prime Minister last week. It will drive growth right across the United Kingdom, using major new investments in infrastructure and research to drive prosperity – creating more high-skilled, high paid jobs and opportunities. The green paper also sets out plans to strengthen institutions in each part of the country to support their specific strengths – whether it’s building up local trade bodies, or creating new educational institutions, making it easier for business to access finance outside London or getting a stronger business voice into local government.

The Prime Minister will tell a Cabinet meeting in the North West this morning that a truly modern British Industrial Strategy must make Britain a hive of new industries which will challenge the companies and industries of today.

Prime Minister Theresa May said:

The Modern Industrial Strategy will back Britain for the long term: creating the conditions where successful businesses can emerge and grow, and backing them to invest in the long-term future of our country.

It will be underpinned by a new approach to government, not just stepping back but stepping up to a new, active role that backs business and ensures more people in all corners of the country share in the benefits of its success.

Business & Energy Secretary Greg Clark said:

This is an important step in building a modern, dynamic industrial strategy that will improve living standards and drive economic growth across the whole country. A modern British Industrial Strategy must – build on the UK’s strengths and extend excellence into the future; close the gap between the the UK’s most productive companies, industries, places and people and the rest; and ensure we are one of the most competitive places in the world to start and grow a business.

We are inviting businesses and workers to contribute to this vision to help us create a high-skilled economy where every place can meet its potential.

The green paper also sets out technologies where Britain has strengths in research and development which could be supported through the government’s new Industrial Strategy Challenge Fund, including: smart energy technologies; robotics and artificial intelligence and 5G mobile network technology. This fund is part of £4.7 billion of additional R&D funding announced by the Prime Minister in November, a bigger increase than in any parliament since 1979.

The approach outlined today builds on what exists already in sectors like automotive and aerospace – with individual firms taking the initiative to organise their sectors, backed by institutions or organisations which enable vital partnership on research and development throughout the supply chain.

In aerospace, close collaboration between government and industry including through the Aerospace Growth Partnership has been instrumental in creating one of the world’s best business environments for advanced engineering, design and manufacture – with thousands of people employed in high-skilled jobs.

Mike Cherry, National Chairman for the Federation of Small Businesses (FSB), said:

FSB has appreciated being part of the discussions with the Business Secretary since last year to help shape the Industrial Strategy. We are proud to be influencing a major government economic blueprint and particularly pleased with the push on skills, infrastructure and connectivity as important drivers of productivity and industry.

In addition, the moves towards a place-based strategy fit well with the UK small business community. Small firms are often the anchors in our local economies – in cities, towns and villages – right across the country. Finally, we want to continue to see an emphasis on supply chain respect, which underpins the Industrial Strategy announced today but also the Corporate Governance Green Paper.

Adam Marshall, Director General, British Chambers of Commerce said:

The developing Industrial Strategy represents a crucial first milestone in a renewed partnership between business and government, working together to create the conditions for future growth.

Business communities across the UK will be pleased to see that harnessing the potential of our cities, towns and counties lies at the heart of the government’s approach to Industrial Strategy. There are dynamic business communities in every corner of the UK – and it is their future success that will make our country more competitive and more prosperous.

A deliberate and steady approach that leads to long-term change is the right way to go.

Terry Scuoler, CEO of EEF, the manufacturers’ organisation, said:

This is an important first step towards creating a comprehensive, consistent and long-term industrial strategy that will help Britain adjust to a more globally-focused, post-Brexit economy. Manufacturing has a key role to play and we look forward to working with the government on crystallising this into a strategic framework that will work and deliver for industry.

The end result of this process must be an industrial strategy that lives up to the promise of driving different behaviours and outcomes for the British economy. This requires the whole of government working together to support it, with clear leadership from the Prime Minister and her whole Cabinet.

The government welcomes work on early sector deals, including from:

• Sir John Bell: on life sciences
• Richard Parry-Jones: on the transition to ultra low emission vehicles
• Juergen Maier: on industrial digitalisation
• Lord Hutton: on improving UK competitiveness and skills in the nuclear industry
• Sir Peter Bazalgette: on the creative industries

This is not an exclusive list and the government is prepared to work with any sector which can organise behind strong leadership to address shared challenges and opportunities.

The Modern Industrial Strategy green paper sets out a plan to improve living standards and economic growth by increasing productivity and driving growth across the whole country. To achieve that goal, the green paper sets out ten strategic pillars to underpin a new government approach:

1. Investing in science, research and innovation

   We must become a more innovative economy and do more to commercialise our world leading science base to drive growth across the UK.

2. Developing skills

   We must help people and businesses to thrive by: ensuring everyone has the basic skills needed in a modern economy; building a new system of technical education to benefit the half of young people who do not go to university; boosting STEM (science, technology, engineering and maths) skills, digital skills and numeracy; and by raising skill levels in lagging areas.

3. Upgrading infrastructure

   We must upgrade our standards of performance on digital, energy, transport, water and flood defence infrastructure, and better align central government infrastructure investment with local growth priorities.

4. Supporting businesses to start and grow

   We must ensure that businesses across the UK can access the finance and management skills they need to grow; and we must create the right conditions for companies to invest for the long term.

5. Improving procurement

   We must use strategic government procurement to drive innovation and enable the development of UK supply chains;

6. Encouraging trade and inward investment policy

   Government policy can help boost productivity and growth across our economy, including by increasing competition and helping to bring new ways of doing things to the UK.

7. Delivering affordable energy and clean growth

   We need to keep costs down for businesses, and secure the economic benefits of the transition to a low-carbon economy.

8. Cultivating world-leading sectors

   We must build on our areas of competitive advantage, and help new sectors to flourish, in many cases challenging existing institutions and incumbents;

9. Driving growth across the whole country

   We will create a framework to build on the particular strengths of different places and address factors that hold places back – whether it is investing in key infrastructure projects to encourage growth, increasing skill levels, or backing local innovation strengths.

10. Creating the right institutions to bring together sectors and places

    We will consider the best structures to support people, industries and places. In some places and sectors there may be missing institutions which we could create, or existing ones we could strengthen, be they local civic or educational institutions, trade associations or financial networks.

As part of the visit to the North West, the government is also announcing a cash boost of £556 million for the Northern Powerhouse to help create jobs, support businesses and encourage growth.

Goole Intermodal Terminal linking rail, sea and road, a 21st century conference centre in Blackpool, and a new innovation fund for Manchester and Cheshire businesses are just some of the locally-chosen projects set to benefit over the next few years. These are alongside many others which improve educational attainment, create jobs, build homes or improve infrastructure.

This latest award of local growth funding is on top of £2.9 billion of Growth Deal funding already awarded to the 11 Local Enterprise Partnerships in the region – an investment which provides targeted financial support to locally-determined projects in order to unlock growth.

Notes to editors:

The £556m will help do even more to benefit the lives of local people across the north. New projects include:

• Goole Intermodal Terminal which will mean the town’s existing rail, sea, motorway and inland waterway links into one site, providing an integrated transport facility for business
• A 21st century conference centre and hotel in Blackpool at the Winter Gardens – helping the town re-establish its presence as a leading conference destination.
• £10 million for the Greater Manchester and Cheshire Life Sciences Fund to provide capital to local small and medium businesses to drive the growth of innovative young life sciences businesses
• Flood resilience measures in Bradford, Calderdale, Craven, Kirklees and Leeds. These will complement existing government investment and help safeguard over 11,000 jobs and 1,300 businesses
• Building the International Advanced Manufacturing Park in Sunderland and South Tyneside – helping to creating an estimated 5,200 jobs.

The 11 Local Enterprise Partnerships in the Northern Powerhouse have been awarded:

• North Eastern £49.7m
• Cumbria £12.7m
• Tees Valley £21.8m
• York, North Yorkshire, East Riding £23.7m
• Lancashire £69.8m
• Humber £27.9m
• Leeds City Region £67.5m
• Liverpool City Region £72.0m
• Greater Manchester £130.1m
• Sheffield City Region £37.8m
• Cheshire and Warrington £43.3m

New cars and motorcycles could no longer require an MOT for the first 4 years on the road under plans to save motorists more than £100 million a year.

Proposals unveiled today (22 January 2017) by Transport Minister Andrew Jones would extend the period before the first MOT test is needed from the current 3 years to 4.

The government is consulting on the plans which will bring England, Scotland and Wales in line with Northern Ireland and many other European countries including France, Ireland, Italy, Spain, Denmark and Norway.

In 1967 the MOT-free period was reduced from 10 to 3 years. Now, safer technology and improved manufacturing means new vehicles stay roadworthy for longer.

Andrew Jones said:

We have some of the safest roads in the world and MOT tests play an important role in ensuring the standard of vehicles on our roads.

New vehicles are much safer than they were 50 years ago and so it is only right we bring the MOT test up to date to help save motorists money where we can.

It is a legal requirement that all vehicles are roadworthy, regardless of whether they have passed an MOT test and the content of the tests will not be changed.

More than 2.2 million cars each year have to undergo their first MOT test, which costs owners a maximum of £54.85.

In the last 10 years, the number of 3 or 4-year-old cars involved in accidents where a vehicle defect was a contributory factor has fallen by almost two thirds, from 155 in 2006 to 57 in 2015.

The most common reasons for cars to fail their first tests are faulty lights, according to the Driver and Vehicle Standards Agency (DVSA).

In addition, almost half of faults found during all MOT tests could be avoided by carrying out simple checks and maintenance, including replacing bulbs, checking tyres and oil as well as ensuring windscreen wipers work, and the DVSA is running an ongoing campaign to help motorists ensure their vehicles are safe at all times.

Subject to the public consultation, the changes could come into effect in 2018.

Tyre checks

The steps you need to take when checking the tyres of your car

The steps you need to take when checking the oil levels of your car

Brakes, lights, indicators and horn checks

Drug gangs using mobiles and couriers to deal remotely in rural areas, including coastal and market towns, will have phones shut down, under new plans announced by the Home Secretary.

The so-called county lines operations involve urban dealers expanding their crack and heroin business into small town markets, operating remotely through the use of specific mobile phone numbers.

The gangs then exploiting children and vulnerable people as couriers to move drugs and money between the new market and their urban hub. The model means dealers can peddle class A drugs without having to visit their markets – cutting the risk of being picked up and arrested by local police.

Now the gangs face having their so-called ‘deal lines’ shut down by the police under new laws being proposed by Home Secretary Amber Rudd.

The use of dedicated mobile phone lines has been identified by the National Crime Agency (NCA) as a key tactic by the drug gangs.

To counter this, the government will table an amendment to the Digital Economy Bill tomorrow (Monday 23 January). If passed, the law will compel the relevant communications provider to disconnect a mobile, SIM card or phone number where it can be proved they are being used in connection with drug offences.

Home Secretary Amber Rudd said:

Gang violence, drug dealing and exploitation have a devastating impact on vulnerable young people, their families and local communities. And they have no place in a Britain that works for everyone.

Taking action to shut down these phone lines demonstrates this government’s determination to crack down on gangs and sends a very clear message that we will not tolerate this despicable criminal activity.

The National Crime Agency published their second report into the county lines drug distribution in November last year. It found that over 70% of police forces in England and Wales are now reporting activity within their area.

Tony Saggers, NCA Head of Drugs Threat and Intelligence, and co-author of the county lines report, said:

Urban street gangs operating under the county lines model have become a nationwide problem that relies heavily upon anonymously acquired mobile phones, used as deal lines, branded to particular gangs and their reputation. The numbers have a high value in their own right to crime groups, who can’t simply replace them quickly and start over, so taking them out of service is a powerful disruptive tool.

These lines are at the very heart of high volume drug supply, which in turn leads to the daily exploitation of young and vulnerable people. A typical line will likely generate in the region of £2,000 to £3,000 per day. Due to the high number of lines, this has the potential to aggregate to over £2 million per week in illicit revenue.

We welcome the proposal to table an addition to the Digital Economy Bill to disrupt these lines. The proposed legislation will add significant value to law enforcement initiatives to combat gang activity and remove confidence in their operating model.

The government is working with key partners, including law enforcement, local authorities and the voluntary sector to bring a new focus to tackling county lines gangs and to produce a coordinated response.

Last July, the government launched a new partnership with the Institute for Community Safety (ICS), providing funding to support communities facing new gang-related threats.

It brings together frontline professionals such as teachers, police officers and youth workers to identify problems in their local areas, then use this information to develop tailor-made plans to tackle gang violence and exploitation.