Heseltine Review says Government should be more active and focused in industrial policy
Thu 01 November 2012
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In a report commissioned by the Government, the former Conservative Party Deputy Prime Minister Michael Heseltine calls on the Government to take stronger action to stimulate the economy and boost British industry. Lord Heseltine's report, 'No Stone Unturned', makes 89 recommendations designed to help industry. One of its key aims is to move £49bn from central government to the English regions to help local leaders and businesses.
Lord Heseltine told the BBC that throughout the regions there is excellence in industry, commerce and academia, which should be extended and that cities were "pulsing with energy" that should be unleashed. He makes the case for boosting growth in Britain's regions.
He recommends a major rebalancing of responsibilities between central and local government, and between government and the private sector.
The 89 recommendations in the report include:
* A National Growth Council, chaired by the Prime Minister.
* Local Enterprise Partnerships (LEPs) to develop their own tailored local economic plans. From 2015-16 they would compete for a share of a single national pot to support growth over a five year period.
* Government and the private sector to work together to create a strong, locally based business support infrastructure. The Chambers of Commerce would have an increased role building a stronger relationship between businesses and LEPs in their area.
* The Government to set out clearly a comprehensive national growth strategy which defines its role and that of local leaders and the private sector in the creation of wealth.
* All sectors of industry to have a formal relationship with a government department.
* A restructuring of the regulatory regime.
* The planning system to be injected with greater urgency.
Government procurement to be improved by employing an experienced chief procurement officer in every department.
Lord Heseltine said: “My recommendations do not single out a few headline proposals for areas we need to improve on. What we need is a new partnership between the private and public sectors, between local communities and central government.
"Only in this way will we get the best use of our limited public funds and leverage in private investment. I have not left the Government with easy decisions. Some may paint my report as a set of criticisms - that is the wrong approach. To invite criticism is a sign of strength. What I have proposed is an opportunity on a grand scale.
“I have looked across the board at how we create wealth, and spoken from my own experience in business and government. What I have outlined today points the way towards prosperity. We will not just need the determination of government, but of every business, every local leader and every individual to deliver this vision.”
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