Microsoft UK Chief Takes the Helm of Government’s Industrial Strategy Council

Clare Barclay, currently the chief executive of Microsoft UK, has been appointed to a pivotal role overseeing the British government’s industrial strategy. In her new position, she will chair the Industrial Strategy Advisory Council, which is tasked with providing guidance to the government in collaboration with businesses, unions, and other stakeholders. This role comes at a critical time as the UK government seeks to bolster economic growth and stability.

Barclay emphasized the importance of having a strategic plan for future industrial growth, stating, “Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the advisory council will play a central role in shaping and delivering this plan.” Her appointment is strategically timed, coinciding with a significant investment summit hosted by senior ministers in London, aimed at showcasing the UK’s renewed political stability and fostering an environment conducive to business investment.

During the summit, Sir Keir Starmer, the leader of the opposition, is expected to emphasize the need for regulatory frameworks that do not hinder economic growth. He plans to outline his vision for revitalizing Britain’s economy, which includes planning reforms and reassurance to executives regarding anticipated tax increases in the upcoming October 30 Budget. Starmer's approach is intended to communicate that the government is committed to creating a favorable investment climate.

Ministers will also unveil plans for a National Wealth Fund to facilitate the decarbonization of heavy industry and introduce a new state-owned green energy lender, known as GB Energy. The summit will feature sponsorship from major financial institutions, including Barclays, HSBC, Lloyds, M&G, Octopus Energy, and TSL, with high-profile attendees such as Goldman Sachs chief David Solomon, GSK’s Emma Walmsley, and former Google chair Eric Schmidt.

Despite the event’s significance, some attendees have raised concerns about its organization, highlighting the complexities of managing such high-profile gatherings. A notable point of contention arose from DP World, a port operator, which suggested it might delay a £1 billion investment pledge in response to criticisms directed at its subsidiary, P&O. This situation has sparked internal discussions among cabinet members about the broader implications for business confidence.

In the context of the new industrial strategy, Business Secretary Jonathan Reynolds articulated the government’s intention to attract global investment and elevate Britain’s status on the international stage. He asserted that the modern industrial strategy aims to establish long-term stability for investors, encouraging them to plan not just for the short term but for the next decade and beyond. The strategy will concentrate on eight sectors where the UK holds a competitive advantage, including creative industries, financial services, advanced manufacturing, professional services, defense, technology, life sciences, and clean energy. The strategy’s finalization will follow extensive consultations with the business community, starting with a green paper to be released during the summit.

The Industrial Strategy Council, which Barclay will chair, will operate as a statutory body, similar to the Office for Budget Responsibility and the Committee on Climate Change. This structure aims to ensure that the council's recommendations and findings receive the attention they deserve from government officials.

Barclay’s appointment is also indicative of a thawing in relations between the UK government and Microsoft. Last year, Microsoft faced significant frustration due to the Competition and Markets Authority (CMA) blocking its $75 billion acquisition of Activision Blizzard over antitrust issues. At the time, Microsoft’s vice president Brad Smith argued that such regulatory decisions could stifle innovation and investment, with Activision describing the UK as “closed for business.” Ultimately, the CMA approved the deal after Microsoft agreed to amend certain terms of the transaction.

Having led Microsoft’s UK operations since 2020, Barclay brings valuable experience to her new role. She also served as a non-executive director at the Confederation of British Industry (CBI) during a tumultuous period marked by allegations of misconduct within the organization. The government has indicated that it will announce an interim advisory council under Barclay’s leadership in the coming weeks, further underscoring her pivotal role in shaping the UK’s industrial strategy moving forward.