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Partnerships between the government and industry on sector-specific issues can create significant opportunities to boost productivity, employment, innovation and skills.
We know that these partnerships can work – from our experience of decade-long partnerships such as the Auto Council and the Office for Life Sciences to more recent collaborations including tourism, creative industries, space and professional and business services.
The government is committed to extending these successful partnerships to other parts of the economy.
A large number of industries have signalled their interest in developing a Sector Deal, and we have been working with many of them in recent months.
We will announce that we intend to proceed with some further Sector Deal discussions in the New Year.
Life Sciences Sector Deal
The government and the life sciences sector have agreed a multi-billion pound deal, ensuring that the UK remains at the forefront of innovation in this sector.
The Sector Deal will help ensure new pioneering treatments and medical technologies are produced in the UK, improving patient lives and driving economic growth. The deal involves substantial investment from private and charitable sectors and significant commitments in research and development from the government.
The sector is highly productive and export focused, generating £64 billion of turnover and employing over 233,000 scientists and staff. The UK is home to world-leading companies such as GSK and AstraZeneca, a strong small and medium-sized business sector, major health charities such as the Wellcome Trust and Cancer Research UK, and the NHS.
The Sector Deal builds on the Life Sciences Industrial Strategy, which was led by the sector and Professor Sir John Bell.
Automotive Sector Deal
This Sector Deal builds on the government’s long-standing partnership with the UK automotive sector.
It ensures that the UK continues to reap the benefits from the transition to ultra-low and zero-emission vehicles by continuing to build the agile, innovative and cost competitive supply chain needed to secure international investment.
The UK automotive sector is a great success story. We are the third largest European car producer and have the highest productivity in Europe among major automotive producing nations. The sector employs 159,000 people directly in vehicle manufacturing, with an additional 238,000 in the supply chain.
Construction Sector Deal
The government and the construction sector, through the Construction Leadership Council, have agreed a Sector Deal to transform the productivity of the sector benefiting the wider economy.
Construction is one of the largest sectors in the UK economy – with a turnover of £370 billion, contributing £138 billion in value added to the UK economy and employing 3.1 million people (9% of the total UK workforce).
The deal will substantially boost the sector’s productivity, through greater investment in innovation and skills, creating new and well-paid jobs and maximising its export potential. This will also reduce the environmental impact, improve the efficiency and reduce whole life cost of new projects and buildings to help build the houses, schools, hospitals and major transport projects we need.
Artificial Intelligence Sector Deal
The government and the Artificial Intelligence (AI) sector have agreed a Sector Deal to boost the UK’s global position as a leader in developing AI technologies.
Taking immediate, tangible actions to advance our AI and data-driven economy Grand Challenge, this deal will anchor the UK as the go-to destination for AI innovation and investment.
AI’s potential is already well known: by one estimate it will add £232 billion to the UK economy by 2030. The UK is a recognised world leader in developing AI. Deepmind, Babylon and Swiftkey – which was backed by Innovate UK – are all globally renowned companies founded here.
The Sector Deal builds on the review by Professor Dame Wendy Hall and Jérôme Pesenti, ‘Growing the artificial intelligence industry in the UK’, which involved an extensive range of business leaders, academics and research councils