Michael Heseltine has always been an interventionist, so it is no surprise that his report on growth suggests a more active role for government.
The former deputy PM wants to see UK firms benefit from better-designed public procurement, the devolution of money and power to the regions through Local Enterprise Partnerships and, most controversially, a public interest test for foreign takeovers. It could have been written by Peter Mandelson when he was business secretary or by Vince Cable if he were unencumbered by the constraints of coalition.
Judged by the standards of a Germany, Sweden or France, Heseltine's recommendations are unexceptional. But they certainly jar with the Treasury's rhetoric in the first couple of years of this parliament. Back in the early days of the coalition, the big idea was "expansionary fiscal contraction", the notion that cutting state spending would unleash a wave of private sector investment. Needless to say, much less has been heard of expansionary fiscal contraction since the double-dip recession, with the regions furthest away from the south east the hardest-hit.
But will the report change policy? Don't bank on it. Heseltine's proposals for regional business support could not happen until after 2015 and the chances of a public interest test for foreign takeovers look non-existent. The Treasury's preternatural horror of what smacks of "picking winners" will only be encouraged by tentative economic recovery. This is one destined for the long grass.
