RICS responds to the UK Government’s plan for a Modern Industrial Strategy

Ahead of the International Investment Summit, the Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds launched the Government’s green paper - Invest 2035: The UK’s Modern Industrial Strategy.

Private investment amounting to £63 billion was committed – more than double the amount secured at the event in 2023.  This funding unlocks a range of opportunities for the built and natural environment, with RICS members in a position to support ambitious projects to support economic growth.

High growth sectors

The Government’s priority is to deliver growth and ensure that businesses have the foundations and environment they need to thrive. Eight sectors have been identified as priority high growth sectors including advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.

Construction is notably omitted from the list of priorities. Future-proofing the sector will also be essential if the Government is to secure the UK’s economic potential. The construction skills shortage remains a major challenge.

A new statutory Industrial Strategy Advisory Council, chaired by Clare Barclay, CEO of Microsoft UK, will support the creation of the Industrial Strategy in partnership with business, devolved governments, and other key stakeholders. It is intended to “hardwire stability and long-termism” into the Government’s growth mission.

A focus on place

RICS supports the Government’s emphasis on place. It is right that there is a commitment to delivering a pro-business environment and an understanding that this should be achieved in partnership with national, regional and local leaders across our cities and regions. Enabling greater devolution is particularly welcome and RICS is working with devolved governments and mayoral authorities across the country to develop local strategies for the built environment. We know that strong leadership that incorporates local expertise, can help to unlock growth, while tackling regional inequality.

There are big challenges to tackle. From the lack of available high-quality housing to the urgent need for investment in our towns and cities. The commitment to supporting the delivery of vital infrastructure and transport connectivity is the right way to drive growth and productivity nationwide.

Nell Brown, RICS Senior Public Affairs Officer commented:

“It is hugely positive that the Government intends to seek growth that supports net zero. RICS’ core vision is a natural and built environment that is sustainable, resilient and inclusive for all.

“There is a vital need to decarbonise and transition to a green economy if we are to meet our net zero commitments and we are supporting our members in this space, with the development of the Residential retrofit standard (rics.org) and RICS Whole Life Carbon Assessments. Investing now will ensure that we have the green skills, jobs and businesses that we need for the future.”

Responding to the Green Paper

The Government has launched a public consultation to inform the Industrial Strategy ahead of its publication in spring 2025. We would welcome RICS members’ input as we develop our response.

For more information or to get involved in RICS’ policy work, contact Senior Public Affairs Officer, Nell Brown at nbrown2@rics.org.