The short version
- Over ninety Labour MPs warn that civil service skill deficits threaten the success of the prime minister's reindustrialization pledge.
- The group proposes a new Reindustrialisation Act and suggests Louise Haigh should oversee efforts from the No 10 North office in Manchester.
- Critics argue current economic orthodoxy favors already prosperous cities, urging a shift toward national resilience and job creation in deprived areas.
A significant faction within the Labour Party is issuing a stark warning regarding the government’s ambitious plans to rebuild Britain’s industrial base. More than ninety backbench MPs have circulated a briefing paper arguing that Andy Burnham’s pledge to achieve equitable growth across all postcodes faces substantial risks of failure. The core concern is not a lack of political will, but rather a structural inability within the civil service to execute complex industrial strategies effectively.
The MPs contend that decades of deregulation and deindustrialization have eroded the state’s capacity to understand and manage modern industry. According to the briefing, government departments have lost detailed knowledge of economic conditions and business operations. This institutional amnesia has led to slow decision-making and an inability to plan comprehensively, creating a barrier to any meaningful revival of manufacturing sectors.
To address these systemic weaknesses, the group is calling for the introduction of a Reindustrialisation Act. This proposed legislation would establish clear, measurable targets for job creation through the expansion of manufacturing capacity. By setting specific benchmarks, the act aims to hold ministers accountable for progress, ensuring that industrial policy moves beyond rhetoric into tangible outcomes. The MPs emphasize that without such structured planning, achieving reindustrialization remains unlikely.
Central to their proposal is a shift in leadership and location. The briefing urges Prime Minister Burnham to task Louise Haigh, the first secretary, with overseeing the entire reindustrialization effort. Crucially, they recommend basing this operation at No 10 North, the government outpost established in Manchester earlier this year. This move is intended to decentralize growth policy from Whitehall and align it more closely with regions that have suffered most from economic decline.
The group also suggests transforming the National Wealth Fund into a Reindustrialisation Development Corporation. Currently an arms-length body focused on investing in promising businesses, this new entity would prioritize providing capital specifically for rebuilding UK industry. This structural change aims to direct financial resources toward sectors that enhance national resilience rather than merely supporting existing market leaders.
Andy MacNae, the MP for Rossendale and Darwen who chairs the group, highlights a persistent inertia within government economic thinking. He argues that traditional growth policies tend to favor cities that are already performing well, thereby exacerbating regional inequalities. Instead, he advocates for a strategy focused on delivering jobs to areas with the greatest need, emphasizing the production of goods that contribute to national security and stability in an uncertain global environment.
The recent nationalization of British Steel is cited by the MPs as an example of the type of decisive action required. However, they stress that reindustrialization must extend beyond single high-profile interventions. It requires a coordinated approach across various government functions, including procurement policies and educational reforms. Without this holistic integration, isolated efforts may fail to generate the broad-based economic recovery envisioned by party leadership.
Steve Yemm, representing the former mining constituency of Mansfield, points out that many nations are currently pursuing reindustrialization strategies. He criticizes elements within Whitehall for viewing industrial policy as outdated nostalgia rather than a necessary tool for modern economic competitiveness. Yemm calls for the prime minister’s full backing to challenge these entrenched assumptions and embrace a more proactive role in shaping the economy.
Lorraine Beavers, MP for Blackpool North and Fleetwood, echoes these concerns while expressing enthusiasm for the potential benefits of reindustrialization for her constituency. Her experience since becoming an MP has taught her that Whitehall often fails to address problems unless explicitly directed to do so. This perspective underscores the urgency of the MPs’ call for clear mandates and accountability mechanisms.
The debate unfolds against the backdrop of John Healey’s upcoming budget and his recent conference speech promising a new age of industrialization. While Labour’s previous industrial strategy identified eight key sectors for growth, including advanced manufacturing and clean energy, the current push seeks to overcome the bureaucratic hurdles that have historically impeded such initiatives. The coming weeks will likely reveal whether the government adopts these recommendations or maintains its current approach.
Sources behind this briefing
Go to the original reporting
- The Guardian World↗Drive reindustrialisation from No 10 North or risk failure, MPs tell Burnham
