All of the UK’s main political parties now highlight the importance of an ‘industrial strategy’ with the aim of improving economic growth and achieving more balance in how its gains are distributed. In addition, and in contrast to the 2015 election, all parties have made a manifesto commitment to raising the intensity of UK research and development. Both the Conservatives and Labour share a desire for more market intervention in some areas: promising energy price caps of some form, tightening up rules on takeovers, and – along with the Liberal Democrats – pushing company boards to consider the interests of workers. But major differences have emerged with respect to business taxes, and the extent of public investment and intervention. The most dramatic differences are that Labour would renationalise large parts of the privatised utilities, and would raise corporate (and other) taxes to fund higher public spending in a number of areas. These are among the conclusions of a new report from the Centre for Economic Performance (CEP) – the third in a series of background briefings on key policy issues in the June 2017 UK general election. ... Anna Valero, author of the report, comments: ‘All parties aspire to raise UK R&D intensity, with the Conservatives’ commitment to increase R&D further as a share of GDP to 2.4% within 10 years and a longer-term aim of 3%; a Labour target of reaching 3% by 2030, and the Liberal Democrats’ long-term aim to double R&D spending. This is a welcome contrast to the 2015 election, when no parties committed to more than a nominal ring-fence of the science budget.’

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