Background to the report

Government supports industry to stimulate growth and productivity, secure jobs and supply chains, and address policy challenges that arise when the economy does not meet the government’s current or future requirements.

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Much of the government’s work to support industry sits within the Department for Business and Trade (DBT). Formed in February 2023 to bring together the relevant functions from the former Department for Business, Energy and Industrial Strategy (BEIS) and the former Department for International Trade (DIT), DBT aims to prioritise policy interventions in sectors that will deliver the largest growth to the economy.

The new government is taking a ‘mission-driven’ approach to government, which means departments have to work together to deliver key priorities in a more effective and efficient way. It has announced five national missions, with the highest priority mission being economic growth.

To support the growth mission, in October 2024 the Secretary of State for Business and Trade and the Chancellor of the Exchequer announced a new Industrial Strategy and published a green paper for consultation, Invest 2035. In the Strategy, the government has designated eight growth-driving sectors which present the greatest opportunity for output and productivity growth over the long term.

Scope of the report

This report examines whether DBT is well-positioned to secure impact from its support for priority industry sectors, including how it works with other departments and delivery partners to do so. It considers whether:

  • DBT has a robust approach to developing its support for priority industry sectors
  • DBT is set up to implement this support effectively
  • there is evidence that DBT’s activities are having an impact

The report assesses how DBT’s support for industry has been operating since bringing together the business functions of the former BEIS and DIT in February 2023. It does not examine the rationale for creating DBT and this is not a review of the merger.

However, the report reflects the impact of the merger and progress made to date, where this is relevant. As DBT’s Business Group leads the sector-facing engagement with industry and other departments, it is the main focus of the study.

The report covers the aims and objectives of sector-based support and relevant new developments, such as the Industrial Strategy and Industrial Strategy Council. It also covers the likely implications of these for how DBT supports industry sectors.

The report recognises that there is a range of activity under way across government and that this is a developing picture. However, it is too early to evaluate the effectiveness of these new arrangements.

Video summary

Leena Mathew, the report’s director, summarises our findings.

Conclusions

DBT was created to provide more joined-up support for industry, a ‘front door’ to business, and deliver economic growth. It has made progress in developing its support for industry, including consolidating teams, reviewing capability needs, and engaging with industry to develop sector plans.

However, there are factors that limit the effectiveness of its approach. DBT needs to be able to make informed decisions about where to deploy its resources, greater transparency over decision making, such as why it intervenes in a particular sector at a particular time, and a greater focus on evaluation to know what works.

To maximise the impact of the forthcoming Industrial Strategy, and contribute to the government’s growth mission, DBT will need to clarify its role within the wider system, and address identified weaknesses.

The success of the Industrial Strategy will depend on whether DBT and other government departments can work effectively together, and with industry, to prioritise and target interventions to drive the desired economic growth in the priority sectors, and across the whole economy.

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Publication details

Press release

View press release (12 Mar 2025)

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