Success of Sector Deals requires transformative guidance

The call by the EEF comes in the Unlocking business ambition through an improved Sector Deal Framework paper, which makes recommendations on what government guidance should include and sets out the steps that sectors must themselves take to show leadership and come together to engage with government.

According to manufacturers, a focus on sector specific challenges could help them secure positive outcomes. EEF survey data shows manufacturers want higher levels of productivity (54%), increased exports (33%) and increased investment in training (31%) to be the outcomes that Sector Deals target.

The EEF says that these outcomes can be realised more quickly as part of the Sector Deals process if government brings forward detailed guidance on the rules of engagement. However, a failure to provide such guidance means sectors could spend considerable time developing Deals which then collapse as they don’t meet government expectations, it adds. It warns that businesses may then disengage from aiming for Sector Deals, with a risk of undermining the government’s Industrial Strategy aims.

Explains EEF head of business environment policy Chris Richards: “Industry sector deals have the potential to make a significant and positive contribution to a post-Brexit industrial strategy. However, the government’s Green Paper left a number of questions unanswered around the process and timescales for deals which could hold back companies from engaging.

“Guidance on the role of different departments and what realistically they can and cannot do will support this process of engagement and help companies form rational expectations. There are urgent questions that need to be answered in guidance to support the ambitions of different industrial sectors.”

EEF believes that by having closer links with specific sectors, government would also gain foresight on the economic direction of travel and intelligence on future challenges such as potential supply chain disruptions as a result of Brexit.

The paper also sets out the first steps sectors can take to develop strong deals and provides advice and examples to businesses and industry leaders about the initial questions they should be asking.

Adds Motorsport Industry Association chief Chris Aylett: “The UK‘s high performance engineering and motorsport sectors welcome the Sector Deal concept as we can see, if handled correctly, these could increase productivity in our sector, but success will rely on guidance from government.

“Timescales for specific actions needed from sector leaders is critical so that limited resources are not wasted and it would help to know soon which sectors will be prioritised. We particularly support the idea of “task and finish” deals which can be dissolved when completed."