Chancellor Announces Next Steps on Industrial Strategy

THE CHANCELLOR, Rachel Reeves, has today unveiled a package of measures in her speech at the Labour Party Conference including the next steps on the government’s industrial strategy.

Industrial Strategy

An Industrial Strategy green paper will be published around Budget in October. It will outline the long-term sectoral growth and priority industries of the government. The final strategy will be published in the spring of 2025 following a consultation with business.

The Chancellor said the Industrial Strategy will be at the heart of the government’s mission to grow the economy, unlock investment and make every part of the country better off.

It will focus on making Britain a clean energy superpower and accelerating to net zero. It will break down barriers to regional growth, and build a secure and resilient economy, she added.

HMRC package

Chancellor Reeves also outlined a package of reforms to improve the UK’s tax system.

As part of the package, HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its wider use by businesses and government.

The Chancellor said e-invoicing can reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake.

The Chancellor also announced that Exchequer Secretary to the Treasury James Murray, the minister responsible for the UK’s tax system, has become the Chair of the HMRC Board. This is to help oversee the implementation of his three strategic priorities for HMRC: closing the tax gap, modernising and reforming, and improving customer service.

It was also announced that a new Digital Transformation Roadmap, aimed to be published in Spring 2025, will set out HMRC’s vision to be a digital first organisation underpinned by customer insight. The Roadmap will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally.

Other measure include 750 schools with primary aged pupils will be invited to take part in a £7m free breakfast club pilot in the summer term (April-July 2025).

Covid Corruption Commissioner

Reeves also announced a block on any Covid-era PPE contract being abandoned or waived. It will be assessed by the new Covid Corruption Commissioner, who will be appointed in October.

The decision will affect £647m of Covid PPE contracts where contract recovery was previously earmarked to be waived.

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