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Department for
Business, Energy
& Industrial Strategy
Department for Business, Energy and
Industrial Strategy
Single Departmental Plan 2017-18
Published 14 December 2017
Our single departmental plan sets out our objectives and how we will achieve them.
Lead ministers: The Rt Hon Greg Clark MP, Secretary of State for Business,
Energy and Industrial Strategy
Lead officials: Alex Chisholm, Permanent Secretary
The Department for Business, Energy and Industrial Strategy (BEIS) was created in
July 2016 as part of the Government's ambition to build a stronger economy and a
country that works for everyone. Our department is at the heart of this ambition,
driving forward the changes that will build an economy that works for everyone, with
great places in every part of the United Kingdom for people to work and for
businesses to invest, innovate and grow. This ambition is all the more important as
we leave the European Union, a move which allows — and requires — the
Government and the country to make long-term decisions about our economic future.
Our objectives
We will:
Deliver an ambitious industrial strategy
Maximise investment opportunities and bolster UK interests
Promote competitive markets and responsible business practices
Ensure the UK has a reliable, low cost and clean energy system
Build a flexible, innovative and collaborative department
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1. Deliver an ambitious industrial strategy
Lead ministers
The Rt Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial
Strategy;
Jo Johnson MP, Minister of State for Universities, Science, Research and Innovation;
Claire Perry MP, Minister of State for Climate Change and Industry;
The Rt Hon Lord Henley, Parliamentary Under Secretary of State;
Margot James MP, Minister for Small Business, Consumers and Corporate
Responsibility
Lead officials
Gareth Davies, Director General, Business and Science;
Sam Beckett, Director General, International, Growth and Analysis
1.1 Industrial Strategy: Building a Britain fit for the future
How we will achieve this
The government's modern Industrial Strategy lays out a long term plan to boost the
productivity and earning power of people throughout the UK. It sets out how we are
building a Britain fit for the future — how we will help businesses create better, higher-
paying jobs in every part of the United Kingdom with investment in the skills,
industries and infrastructure of the future.
We will boost productivity and earning power across the country by focusing on the
five foundations of productivity: Ideas, People, Infrastructure, Business Environment
and Places.
The Strategy sets out Grand Challenges to put the UK at the forefront of the
industries of the future, ensuring that the UK takes advantage of major global
changes, improving people's lives and the country’s productivity. The first four Grand
Challenges are focused on the global trends which will transform our future: Growing
the Artificial Intelligence and Data Driven Economy, Clean Growth, Future of Mobility
and our Ageing Society.
We will use the framework set out in this strategy to work with industry, academia and
civil society over the years ahead to build on the Uk’s strengths, make more of our
untapped potential and create a more productive economy that works for everyone
across the UK.
1.2 Invest in science, research and innovation
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How we will achieve this
We are creating UK Research and Innovation, a single Non-Departmental Public
Body that will integrate the seven Research Councils, Innovate UK, and the research
and knowledge exchange functions of the Higher Education Funding Council for
England.
We will maintain our excellent science and research base to ensure that the UK can
become the world’s most innovative economy. We will ensure the UK continues to
support world leading science and invests public money in the best possible way.
Increase research and development investment across the economy to 2.4% of GDP
by 2027.
Through our Industrial Strategy we are committed to building a knowledge and
innovation-led economy. The UK is a world leader in science and innovation. By
delivering this significant increase in investment as part of our Industrial Strategy —
alongside increasing the rate of Research and Development Expenditure Credit to
12% as announced at Autumn Budget 2017 - we are building on our strengths and
working with business to ensure that UK scientists and researchers continue to push
the boundaries of innovation.
1.3 Support world leading sectors and launch our Grand Challenges
to put the UK at the forefront of the industries of the future
How we will achieve this
The Industrial Strategy sets out Grand Challenges to put the United Kingdom at the
forefront of the industries of the future. The challenges will direct the focus of the
Government and engage the private sector to ensure we take advantage of major
global trends, improving people's lives and the country’s productivity. The first four
Grand Challenges are focused on four world-changing trends which will shape Britain
in the decades ahead: Al & Data (Growing the Al and Data Driven Economy), Clean
Growth, Future of Mobility and Ageing Society.
We will focus our efforts in areas where the UK can build on our distinctive strengths,
allowing us to fully take advantage of the market opportunities of the trends that will
shape our future.
We will launch and roll out Sector Deals - partnerships between government and
industry aiming to increase sector productivity. The first Sector Deals are in life
sciences, construction, artificial intelligence and the automotive sector.
1.4 Supporting businesses to start and grow
How we will achieve this
We aim to make the UK the best place to start and grow a business, and a global
draw for the most innovative companies.
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We will drive productivity in businesses of all sizes by increasing collaboration,
building skills and ensuring everyone has the opportunity of ‘good work’ and better,
higher skilled jobs.
We will create a business environment equipped for the challenges and opportunities
of new technologies and new ways of doing business.
To support high-growth innovative businesses to achieve their potential, we have
launched an action plan to drive over £20bn of investment into these businesses over
the next 10 years, including by establishing a new £2.5bn investment fund incubated
in the British Business Bank.
We will conduct a review of what actions could be most effective in improving
productivity of small and medium enterprises, including how to address the ‘long tail’
of less productive businesses.
1.5 Driving growth across the country
How we will achieve this
By building on the strong foundations of our city, growth and devolution deals we will
introduce Local Industrial Strategies and further strengthen local leadership through
Local Enterprise Partnerships and Mayoral Combined Authorities.
We will support ongoing efforts across government to develop new policies to
improve skills in all parts of the country, create more connected infrastructure,
harness innovation strengths, ensure land is available for housing growth, and
strengthen our cultural assets.
Our performance
By building on the strong foundations of our city, growth and devolution deals we will
introduce Local Industrial Strategies and further strengthen local leadership through
Local Enterprise Partnerships and Mayoral Combined Authorities. We will introduce
new policies to improve skills in all parts of the country, create more connected
infrastructure, harness innovation strengths, ensure land is available for housing
growth, and strengthen our cultural assets.
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2. Maximise investment opportunities and bolster
UK interests
Lead ministers
The Rt Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial
Strategy
Jo Johnson MP, Minister of State for Universities, Science, Research and Innovation
Claire Perry MP, Minister of State for Climate Change and Industry
Margot James MP, Minister for Small Business, Consumers and Corporate
Responsibility
Richard Harrington
Lead Officials
Sam Beckett, Director General, International, Growth and Analysis
Jaee Samant, Director General, Market Frameworks
Gareth Davies, Director General, Business and Science
Jeremy Pocklington, Director General, Energy and Security
2.1 Encouraging inward investment
How we will achieve this
In the Industrial Strategy, the government has identified four Grand Challenges,
global trends that will shape our rapidly changing future and which the UK must
embrace to ensure we harness all the opportunities they bring. Each Grand
Challenge represents an open invitation to business, academia and civil society to
work and engage with the government to innovate, develop new technologies and
ensure the UK seizes these global opportunities.
We will utilise the department's investor relations capability to engage UK and
international providers of capital, in order to build understanding and confidence in
the UK’s markets and our regulatory frameworks.
We will continue to work with other government departments to identify and target
potential UK investors in order to persuade them to invest in the UK.
2.2 Working to ensure our economy is resilient and best placed to
seize opportunities
How we will achieve this
We will improve resilience to economic shocks through early identification, and
increased prevention of risk through investigation of future trends and enhanced
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business intelligence, providing an effective response to shocks through targeted
contingency planning.
2.3 Promoting the interests of UK businesses and wider BEIS
interests in EU and Euratom Exit negotiations
How we will achieve this
In our Industrial Strategy we set out how we will build on our strengths, extend them
into the future and capitalise on the opportunities before us.
We want the UK to be the go-to place for scientists, innovators and tech investors
across the world. We intend to secure the right outcome for the UK research base as
we exit the European Union.
Through negotiations with the European Commission, the Government is seeking a
close relationship with Euratom. The Government is also putting in place all the
necessary measures to ensure that the UK can operate an independent nuclear
safeguards regime.
2.4 Building the profile of the UK on the international stage
How we will achieve this
We will ensure that the UK remains a world leader in science and innovation and
continues to attract the brightest talent and collaborations around the world.
As part of our Industrial Strategy we will invest £300 million over the next three years
in growing and attracting world-class talent, including in priority areas aligned with the
Industrial Strategy such as artificial intelligence, to enhance our skilled workforce and
attract private sector research and development investment. We will continue to
support international action on climate change. The UK is a world leader in cutting
emissions while growing the economy.
The global transition to a low carbon economy offers huge growth opportunities which
the UK is well placed to take advantage of as a core element of our Industrial
Strategy.
We aim to make the UK a world leader in the development, manufacture and use of
low carbon technologies, systems and services that are cheaper than high carbon
alternatives.
Our performance
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Between 2011/12 and 2016/17 International Climate Fund programmes have:
« Supported 34 million people to cope with the effects of climate change
« Provided 12 million people with improved access to clean energy
« Reduced or avoided 9.2 million tonnes of greenhouse gas (GHG) emissions
(tCO2e)
«Installed more than 400 MW of clean energy capacity
¢ Mobilised £2.2 billion public and £500 million private finance for climate
change purposes in developing countries
Source: Annual International Climate Fund results
Business investment in the UK: £45.8billion
Source: Business investment in the UK: July to September 2017 provisional results
Number of involved inward investment successes: 1859 in 2016/17
Source: Department for International Trade Annual Reports and Accounts 2017-2017
/ Release schedule: quarterly
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3. Promote competitive markets and responsible
business practices
Lead ministers
The Rt Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial
Strategy
Margot James MP, Minister for Small Business, Consumers and Corporate
Responsibility
Lead officials
Jaee Samant, Director General, Market Frameworks
3.1 Reforming corporate governance
How we will achieve this
We will develop and implement the measures announced in response to the
consultation on the Corporate Governance green paper.
We will encourage companies to adopt best practice in corporate reporting and
responsibility as well as good business practice, and encourage employee
involvement in the management of our businesses.
We will coordinate and support business-led initiatives, including the Hampton-
Alexander Review into FTSE Women Leaders and Sir John Parker's review into
ethnic diversity on boards.
3.2 Promoting fairness in the labour market and improved working
conditions
How we will achieve this
We will respond to and build on the recommendations of the Matthew Taylor Review
to encourage ‘good work’ and sustain and improve employment practice as well as
maintaining flexibility for the employer.
We will make workplaces more open to people in different circumstances, including
parents and carers, through a combination of employer flexibility and statutory
entitlements.
We will act firmly to eliminate workplace exploitation. We will use all enforcement
measures at our disposal to crack down on the labour market abuses practiced by a
small minority of employers.
Implement reforms to improve effectiveness of National Minimum Wage enforcement
and improve intelligence sharing and cooperation more widely across agencies,
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through establishment of Director of Labour Market Enforcement.
3.3 Ensuring the UK has the right regulatory frameworks to help meet
business and consumer needs
How we will achieve this
We will publish a Consumer Green Paper that tackles areas where markets are not
working for consumers and businesses.
We are bringing forward measures to help tackle unfair practices in the energy
market to help reduce energy bills. We have published draft legislation, sending a
clear message to the industry that we will protect the interests of their customers if
they don't act now to tackle the detriment found by the Competition and Markets
Authority.
Small businesses are the backbone of our economy, providing jobs and opportunities
across the country. Supporting Britain’s 5.5 million small businesses is at the heart of
this Government's Industrial Strategy; the appointment of the Small Business
Commissioner will tackle unfair payment practices, supporting our goal to create an
economy that works for all.
3.4 Safeguarding UK interests in investments in national
infrastructure
How we will achieve this
We will deliver reforms to increase national security protections for critical
infrastructure.
We will safeguard the post office network, including protecting existing rural services,
work with the Post Office to extend the availability of business and banking services
to families and small businesses in rural areas, and support the Post Office through
its ongoing transformation programme.
Our performance
National Living Wage as a proportion of median earnings 57.6%in April 2017
Source: National Minimum Wage, Low Pay Commission Report 2017
FTSE 350 board positions being held by women 24.5%as at October 2017
Source: Hampton-Alexander review / Release schedule: annual
BAME Directors on Boards of FTSE 100 companies 8%
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Source: Parker Review, 2017 / Release schedule: annual
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4. Ensure the UK has a reliable, low cost and clean
energy system
Lead ministers
Richard Harrington
Claire Perry
The Rt Hon Lord Henley, Parliamentary Under Secretary of State
Lead officials
Jeremy Pocklington
Sam Beckett, Director General, International, Growth and Analysis
4.1 Ensure that our energy system is reliable and secure
How we will achieve this
We will ensure we maintain adequate energy capacity, for example through the
annual operation of the capacity market, to guarantee that we can cope with
unexpected peaks in demand and enable a reliable supply of electricity.
We will make our electricity system smarter and more flexible, creating the right
environment for more storage, demand side response, smart grids, and
interconnection.
As we set out in our Clean Growth Strategy, encouraging the uptake of heat networks
is an important way to reduce carbon and cut heating bills for customers.
4.2 Deliver affordable energy for households and businesses
How we will achieve this
By focusing on Clean Growth we can cut the cost of energy, drive economic
prosperity, create high value jobs and improve our quality of life.
We have published draft legislation to help tackle unfair practices in the energy
market to help reduce energy bills, sending a clear message to the industry that we
will protect the interests of their customers.
We will ensure that every household and small business in the country has been
offered smart meters by the end of 2020.
We will support the take-up of energy efficiency improvements in the owner-occupied,
privately rented, and social housing sectors, with a view to as many homes as
possible reaching Energy Performance Certificate Band C by 2035.
4.3 Take action on climate change and low-cost decarbonisation
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How we will achieve this
The Government's Clean Growth Strategy sets out how the whole country can benefit
from low carbon economic opportunities through the creation of new technologies and
new businesses, which create jobs and prosperity across the UK, while meeting our
ambitious national targets to tackle climate change.
We will continue to support international action on climate change.
4.4 Manage our energy legacy safely and responsibly
How we will achieve this
We will deliver safe, cost effective and environmentally sensitive decommissioning of
offshore oil and gas infrastructure in the North Sea, while making sure that the UK
benefits from the job opportunities this will create.
We will work with and through the Nuclear Decommissioning Authority to develop and
deliver a robust plan for safe, cost effective, environmentally sensitive
decommissioning of our civil nuclear waste through a geological disposal facility,
creating thousands of jobs and opportunities for UK companies in the supply chain.
We will ensure the ongoing safe and responsible management of our coal legacy,
including administration of the concessionary fuel entitlements and personal injury
claims for those previously involved in coal mining.
We will continually improve UK civil nuclear security and safety arrangements to
ensure they are robust and effective, now and in the future.
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Our performance
Smart and advanced meters operating across homes and businesses in Great
Britain, by both large and small energy suppliers: 8.61 million up until 30 September
2017
Source: Smart Meters Statistics / Release schedule: quarterly
Electricity generation from renewable sources: 29.8%, Quarter 2 2017
Source: Energy Trends Statistics / Release schedule: quarterly
Annual Greenhouse Gas emission reporting against carbon budgets: 2015 total
greenhouse gas emissions of 496 MtCO2e, meaning the UK was on track to meet
the Second Carbon Budget (2782 MtCO2e in 2013-17).
Source: Final UK Greenhouse Gas Emissions: National Statistics, 1990 - 2015
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5. Build a Brilliant, Enterprising, Inclusive and
Skilled Department
Lead Ministers
The Rt Hon Lord Henley, Parliamentary Under Secretary of State
Lead Officials
Angie Ridgwell, Director General, Corporate Services
5.1 Deliver our people strategy to provide the capability to achieve our
objectives
How we will achieve this
We will have a clear workforce strategy with a strong BEIS brand which will enable us
to attract and retain people, and have the right people in the right roles at the right
time.
We will improve organisational and individual capability and talent development
through a learning and talent offer that provides opportunities for all our people to
develop knowledge and skills in priority areas.
We will aspire to be the best and build a strong performance culture where we
support our teams to excel.
5.2 Enabling Digital, Data and Technology to deliver exceptional
services for our staff as well as the people and businesses we serve
How we will achieve this
We will work collaboratively with policy teams to harness data and technology to
deliver policy seamlessly, cost-effectively and to meet the needs of businesses and
citizens.
We will work in partnership with Cabinet Office and the Government Digital Service to
reduce operating costs and improve efficiency and effectiveness of services.
5.3 Deliver a workspace that supports and enables BEIS to deliver its
objectives.
How we will achieve this
We will operate consistently with the Commercial Operating Standards published by
the Government Commercial Function, and ensure that BEIS procurement promotes
opportunities for UK-based small and medium enterprises and contributes to UK
growth.
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We will work closely with the shadow Government Property Agency to develop a new
BEIS Strategic Asset Management Plan.
We will work cross-departmentally to continue to reduce the governments
environmental impact, building on the progress we have made since 2010.
5.4 Ensure that the department continues to use its available
resources efficiently to deliver ministers’ strategic priorities.
How we will achieve this
We will ensure that resources are appropriately allocated within the Department and
used effectively in the delivery of its priorities.
We will work across the BEIS group of organisations to deliver high quality counter-
fraud services which comply with the standards which have been developed by the
Cabinet Office.
5.5 Elevating BEIS from a well-functioning department to an
exceptional one which delivers for business
How we will achieve this
We will create a high performing and high impact Department to deliver real-world
outcomes for business and consumers.
We will strengthen our understanding of business and its impact on citizens, drawing
on a broad range of talent sources to ensure that our people are respected for their
skills and expertise.
We will work more effectively with our partner organisations to improve the quality of
our policy outcomes.
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Our performance
Annual Employee Engagement Index
Year Level of staff engagement
2017 56%
2016 54%
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Our finances
(000s) Departmental Expenditure Limit (DEL) — 12,878,657
Resource DEL - 1,982,716
Capital DEL — 10,895,941
Annually Managed Expenditure — 2,689,055
Control totals included in this document are in line with the latest voted by Parliament
in the Main Supply Estimates 2017-18
Source: Main Supply Estimates 2017-2018
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