Partner Article

Government criticised for 'focus on decline'

The government would have more success if it focused on growth rather than decline, industry bodies claim.

A report to be published tomorrow by the National Endowment for Science, Technology and the Arts (NESTA) is urging the government to move away from corrective intervention and to focus instead on supporting new growth sectors of the economy.

The organisation is calling on the government to use its recommendations as a basis for a ‘national economic strategy’ that would help fight the recession.

Jonathan Kestenbaum, CEO of NESTA, said: “Government has to make the switch from bailing-out industries, to investing in growth sectors where future market demand is strong. This is not a case of spending new money, but of ensuring that existing money is spent consistently with a focused industrial strategy.”

The new growth sectors outlined by NESTA include green technologies, creative industries and healthcare.

NESTA estimates that the total cost for a targeted, sector-led package of this type would be around £12bn over five years.

This was posted in Bdaily's Members' News section by Ruth Mitchell .