UK Autumn Budget 2024: Clarity of purpose for cross-sector collaboration | Insights

As the dust settles around the Autumn Budget, it has now become clear where the demand lies for cross-sector collaboration on the growth and investment agenda. While many core policy areas will require public, private, not-for-profit, and higher education sectors to partner to deliver outcomes, the budget provides real insight into where the sectors should be looking to work together to deliver long-term economic growth.

Shaping the UK’s Modern Industrial Strategy

Not surprisingly, the industrial strategy launched alongside the International Investment Summit two weeks ago featured heavily. Invest 2035: the UK’s Modern Industrial Strategy consultation is now open and outlines core areas for collaboration across eight growth-driving sectors (advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, professional services and life sciences).

Private Sector and the Growth Agenda

The focus on the National Wealth Fund pensions through the British Growth Partnership, and the Industrial Strategy linked to Local Growth Plans all signal clear areas for the private sector to engage in the growth agenda meaningfully.

Cultural Shifts for Effective Collaboration

With His Majesty's Treasury (HMT) and the Department for Business and Trade (DBT) leading these core initiatives, ensuring that all parties have the skillset and mindset to work together meaningfully will be necessary. This will require shifts in culture and approach that accommodate meaningful and constructive collaboration. Invest 2035 includes a critical section on partnership frameworks, highlighting the need to establish how sectors can and should work together.  

Partnerships in Infrastructure Development

The budget announced an extra £100 Billion of spending over the next five years on crucial infrastructure. The ambition is that spending big on housing, roads, and power will serve to unlock growth and investment across all parts of the UK. To ensure that these ambitions on infrastructure are met, coordination and partnership will be needed with the critical infrastructure providers. A new relationship, a focus on social value, and ongoing dialogue to ensure delivery is met on time and within budget will be essential for this growth.  

Net Zero Initiatives: New Partnerships in Greentech and Green Hydrogen

Previously trialled commitments to CCUS (Cabon Capture Utilisation and Storage) and Great British Energy heighten the importance of a new form of partnership. Excitingly, there were new announcements around contracts with 11 green hydrogen producers. All of this points to the need for a focus on Greentech opportunities and the role the UK can continue to play on the world stage.

Collaboration in Science, Innovation and Long-Term R&D

Science and innovation were also heavily touched upon. The demand for higher education and government to work alongside industry on R&D has been clear for some time. The ambition to provide a 10-year settlement will provide a long-term lens for collaborative working and will need a fresh approach that provides meaningful economic growth.

Unlocking Future Skills, Technology & Productivity

Underpinning the above and ensuring the workforce is fit to deliver means that skills will be in the spotlight. With the government already confirming the creation of Skills England, the Budget went further. It acknowledged the need to work with employers to identify changes to the Growth and Skills Levy, working with employers to identify key areas of demand for future skills.

The role of consultants and providers was made more evident in the budget. With massive spending on NHS, alongside a 2% productivity target for government departments, technology and, specifically, the adoption of AI is now front and centre. While unsurprising, the need to work together, benchmark, and deliver on this agenda will be crucial to government delivery.

The establishment of the Office for Value for Money has a specific remit to be informed by lessons learned from the past, international best practices, and the views of external organisations. There is a clear role for sectors outside government here, with a need to partner with a purpose to deliver outcomes.

Social Impact Investment: Collaborating with Non-Profits and Charities

Not-for-profits and major charities were also included in the budget, and a commitment was made to establish a social impact investment vehicle to support the government in delivering its missions. The announcement will be fully fleshed out in Phase 2 of the spending review, aiming to bring together socially motivated investors, the voluntary sector and government to tackle complex social problems. While collaboration between the public sector and charities has traditionally been strong, bringing together the three sectors to deliver on the missions will require a new approach to ensure a shared sense of responsibility and commitment to outcomes.

There will be plenty of opportunities for cross-sector collaboration in the coming years. Yet, if we are to get this right and truly deliver on an ambitious agenda, strategic dialogue and the development of leadership capabilities to work together across sectors will be a necessity. We have clarity of purpose; now is the time to establish how we can do it.

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