One thing they should do is put money into R & D alternative energy sources. Good from an enviromental point of view, good from an economic point of view (build/develop/export our own wind/wave etc systems - possibly offshore, instead of importing them) and reduces the dependence of the UK/West on Oil.
Also, interest free loans or low interest loans for inventors or innovators. There was programme on local TV recently on someone who has developed a prosthetic arm that gives the patient much better use of their fingers than existing one. This has involved Scientists and Engineers doing all sorts of work. Now they need to produce it in sufficient numbers and at an appropriate cost to make its use feasible. This needs investment to go from being R&D company to a manufacturing one. But it depends on private investors - surely the Government should help in this situation?