Despite significant and impressive technical progress with formal methods in computer software development and hardware design, our research shows that there are major structural issues to be addressed if formal methods are to be exploited in a broad industry base in the near future. As well as a variety of particular inhibiting factors, there are deep structural problems with the formal methods market place. It is typically technology-led rather than application-led, and restricted by the organisational requirements for successful formal methods use. The broad recommendations, and the specific activities proposed for a UK strategic programme will, we contend, contribute to the identification and development of a market structure which would help create a "virtuous circle" of interacting. This will naturally stimulate activities which will overcome many of the shortcomings and inhibiting factors currently observed.