Modern Industrial Strategy will make the UK the best country to invest in and grow a business and support tens of thousands of new jobs

• Electricity costs for thousands of businesses to be slashed by up to 25%   
• UK Government to establish a centre for doctoral training in semiconductors, led by Swansea University
• Welsh businesses to benefit from innovation funding, access to finance, faster grid connections and better-equipped sites for expansion. 

The Uk is set for increased economic growth, billions in investment and tens of thousands of new jobs supported over the next decade as a result of the UK Government’s modern Industrial Strategy, which is published today (Monday 23 June).  

The Strategy’s bold plan of action includes: 

• Slashing electricity costs by 20-25% to level the playing field for energy-hungry industries like chemicals and key growth sectors like automotive. 
• Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank capacity to £25.6 billion, crowding in tens of billions of pounds more in private capital.  
• Reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators.   
• Boosting R&D spending to £22.6bn per year by 2029-30 to drive innovation across the IS-8, with more than £2bn for AI over the Spending Review, and £2.8bn for advanced manufacturing over the next ten years. This will leverage in billions more from private investors. Regulatory changes will further clear the path for fast-growing industries and innovative products such as biotechnology, AI, and autonomous vehicles.
• Attracting elite global talent to our key sectors, via visa and migrations reforms and a new the Global Talent Taskforce.  
• Revolutionising public procurement and reducing barriers for new entrants and SMEs to bolster domestic competitiveness.  

The Strategy contains measures to forge a new relationship between business and government, making the UK the best place to start and scale up a business. 

It will unlock growth across the UK, targeting areas of strength from the country’s strengths in aerospace in North Wales to the world’s first compound semiconductor cluster in South Wales.   

More than 7,000 UK businesses are set to see their electricity bills slashed by up to 25%. British manufacturers currently pay some of the highest electricity prices in the developed world, in some cases, double the European average, while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid.

For too long these challenges have held back growth and made it harder for firms to compete globally. Today’s announcement marks a decisive shift, with government stepping in to support industry and unlock the UK’s economic potential.

From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals.

These firms, which support over 300,000 skilled jobs across the UK will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market, helping level the playing field and make them more internationally competitive. Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly.

The UK Government is also increasing support for the most energy-intensive firms, like steel, chemicals, and glass, by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. These businesses currently get a 60% discount on those charges, but from 2026, that will increase to 90%. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future.

These reforms complement the government’s long-term mission for clean power, which is the only way to bring down bills for good by ending the UK’s dependency on volatile fossil fuel markets.

The Industrial Strategy is a 10-year plan to promote business investment and growth and make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create 1.1 million good, well-paid jobs in thriving industries – delivering on this government’s Plan for Change. 

Wales is already punching above its weight in many of the growth driving sectors set out in the Industrial Strategy.

Prime Minister Keir Starmer said:  

This Industrial Strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.

In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people’s pockets as part of the plan for change.

This is how we power Britain’s future – by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear – Britain is back and open for business.

Secretary of State for Wales Jo Stevens said: 

Wales has huge potential and our government’s Industrial Strategy will harness the strengths of our businesses and workforce to drive growth and create jobs. 

The strategy will support key sectors like aerospace and compound semiconductors while developing industries of the future like floating offshore wind where Wales is well-placed to be a world leader. 

Our modern Industrial Strategy is built to last and make Wales one of the best places to invest and do business. Working alongside Welsh Government we will boost growth, raise wages and create wealth across our country.”  

Business and Trade Secretary Jonathan Reynolds said: 

We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people. 

Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people’s pockets and pays for our NHS, schools and military. 

Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial energy prices globally competitive.  

Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened, and now we’re taking the bold action needed. Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver.” 

Sarah Williams-Gardener, Chair of Fintech Wales, said:

We are delighted to see financial services recognised as a key sector in this Industrial Strategy. We look forward to working closely with the Government to help unlock the sector’s full potential. 

The emphasis on AI and the compute power required to support its development is particularly welcome, as we begin to see generative AI driving innovation across financial services—empowering both providers and customers through the next generation of digital banking platforms.

Frank Holmes, Founding Partner of Gambit Corporate Finance and Chair of the Cardiff Capital Region Investment Board, said: 

Today’s announcements mark a timely and important shift towards a connected, strategic approach to economic growth. The renewed focus on industrial strategy and SME finance speaks directly to the opportunities we are unlocking in the Cardiff Capital Region. We have backed innovative and scalable businesses like Whisper TV, showcasing how tailored regional finance can drive job creation, innovation and global reach.  

The UK’s commitment to extending SME access to finance aligns perfectly with the ecosystem we are building  in CCR as a proven delivery partner and a model for regional economic development.” 

Louise Harris, CEO of Tramshed Tech in Cardiff, said: 

The launch of the UK Government’s Industrial Strategy is a pivotal moment for our tech and innovation ecosystem. By aligning local strengths with national ambition, this strategy provides a powerful platform for Welsh businesses to grow, attract investment and lead in emerging sectors such as technology, advanced manufacturing, and creative industries.  

This strategy recognises that innovation isn’t just about technology in isolation – it’s about creating sustainable, high-quality jobs while tackling real-world challenges. This approach will create the perfect environment for startups and scale-ups to thrive, knowing they have both the infrastructure, skills and strategic support to take their innovations from Wales to the world.” 

The Industrial Strategy is a 10-year plan to promote business investment and growth and make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create good, well-paid jobs in thriving industries – delivering on this government’s Plan for Change. 

Investment from private companies is essential to creating new jobs, growing the economy and securing public services. That is why the Strategy will also introduce measures to make it quicker, easier and more profitable for businesses to invest in the UK, with the aim of significantly increasing businesses investment and in key growth sectors by 2035 and helping to create 1.1 million well paid jobs across all corners of the UK. 

Sector Reaction

David Hughes CBE, Chief Executive, Association of Colleges said:

“I am pleased that this Industrial Strategy places colleges at the heart of economic growth in the eight priority areas including Engineering, Creative Industries and Digital. Colleges are keen to do even more to support employers to have the skilled people they need, and open up more pathways for young people and adults to access high quality jobs.

“I am particularly encouraged by the comprehensive focus on skills from across government, specifically the commitment to investing in vocational training, apprenticeships, and technical excellence colleges. Along side this, the emphasis on employers becoming partners with colleges and universities represents a significant step towards addressing the skills gap in the eight key sectors.

“The capital support for further education institutions is crucial. It will enable colleges to upgrade their workshops, classrooms and kit, ensuring that students receive high-quality training that meets industry standards. It is also great to see the emphasis on mayor-led local growth plans, to convene the right people from employers, colleges and universities to drive regional economic development.

“The government has shown in its first year that it recognises the need to address longstanding underinvestment in young people. The funding package for 16 to 19 education and skills for the next four years is far better than the last 15 years. What we need now is to see the same shift for adults, to support people to learn new skills, shift into high quality jobs and to move off benefits.

“I am optimistic about the potential of the ‘Invest 2035’ strategy to transform the UK’s industrial landscape and create the highly skilled workforce needed to kickstart economic growth. We will work closely with the government to ensure the needs of colleges, and their students are fully met so that the sector remains the cornerstone for national and regional economic success.”

Associate Professor Deirdre Hughes OBE, said:

“The government’s new Industrial Strategy is welcomed. It sets out a strong commitment to harnessing Britain’s talent pipeline and rightly emphasises the importance of raising aspirations and opportunities for young people and adults alike. To ensure this has real impact, investment in high-quality all-age careers support services is essential – both in local communities and online. Making greater use of AI and human expertise can enhance access, personalise guidance, and scale support to reach more individuals, helping to unlock potential across the country.”

Ann Watson, CEO of Enginuity, said:

“This is a sea-change moment for the UK’s manufacturing and engineering sectors

 with government making good on their commitment to set a long-term vision for industry.

“We look forward to working with government to help deliver the Industrial Strategy and accompanying Advanced Manufacturing Plan.

“Government priorities have been clearly laid out, backed by decisive investment and cross-Whitehall policy interventions. Today the government has sent a message loud and clear to British Industry that it is taking global competitiveness seriously. 

“Government has clearly listened to businesses: alongside energy costs, skills gaps are recognised as a key barrier that must be removed to unlock growth. 

“Enginuity is pleased to see measures that we and other industry voices have repeatedly called for: a government commitment to review funding bands, support to specifically meet SME training needs, and the need for more agile courses, shorter in length and more closely tied to industry needs. 

“The cash injection to support engineering skills is welcome, as is the new sectoral Upskilling and Reskilling Programme – funded by DBT – which intends to facilitate the development of tailored training courses specifically to meet SME training needs.  

“With a clearly articulated plan now in place, government must turn its focus to policy implementation and ensure that SMEs do not fall through the cracks of narrow sector definitions or prescriptive eligibility criteria. 

“Government’s recognition that SMEs are the backbone of the manufacturing sector will be fundamental to delivering economic growth, and for the UK to be recognised as the best place in the world to start, grow and invest in this sector.

“SMEs often don’t fit neatly into sector boxes, instead they play a crucial role in a diverse mix of supply chains, often simultaneously feeding into several of the designated priority sectors (IS-8). 

“A flexible, holistic approach will therefore be needed from government when it comes to sector definitions and the policy interventions that follow, to recognise the critical cross sector role SMEs play in multiple supply chains.

“Manufacturing businesses want their sector to drive economic growth: they want to be at the forefront of technological innovation, making world leading progress in decarbonisation and to be recognised as provider of good jobs.”

Ben Willmott, head of public policy at the CIPD, said:

“We welcome the ambition to support growth in key high-potential sectors. However concentrating investment on these sectors alone will not be enough to boost productivity and living standards across the UK; a broader skills and workforce strategy is needed.

“The eight sectors are disproportionately located in London and the south-east and represent less than a quarter of overall employment and under three in ten private sector jobs. Even if the plan results in productivity improvements and an increase in the number of high skilled and high paid jobs in these sectors, it won’t be enough to drive inclusive growth across the economy. It’s essential that the government also supports investment in the ‘everyday’ sectors, such as retail and hospitality, that employ millions of workers too.

“We welcome the focus on developing workforce strategies for sectors within this group facing skills shortages, strengthening employer engagement, and boosting the demand for skills. These sectors stand to gain from more flexible training provision through the new Growth and Skills Levy, as well the first wave of modular learning available under the Lifelong Learning Loan Entitlement. However, this two-tier approach risks limiting the impact of both the skills agenda and the wider industrial strategy, and there’s a danger that too many individuals, employers, and parts of the economy will be left behind. We need a skills system that works for everyone — not just a few priority industries.

“As part of this the government should go beyond the proposed youth guarantee and offer an apprenticeship guarantee for all 16-24 year-olds. This would meaningfully improve opportunities for more young people and help develop the skills employers need to drive growth.

“It’s also important the proposed business growth service for SMEs provides advice and support on people management, skills and employment relations issues which many small businesses lack understanding of and struggle to grow as a result.”

Dr Joe Marshall, Chief Executive of NCUB said: 

“Weaved throughout the new Industrial Strategy is an important commitment to partnership. Partnerships that draw on and strengthen our economy. From our currently world-leading universities through to frontier businesses of tomorrow – it will be collaboration that unlocks and shifts the dial in terms of economic growth.  

“The Industrial Strategy rightly highlights the importance of key enablers in the system – from R&D Tax Credits, to support given to universities to nurture collaborative partnerships with industry. From marine technology in Plymouth, to cyber security in Belfast – the Industrial Strategy reinforces the importance of collaboration between universities and businesses across the UK.  

“The Government has committed to driving sectoral transformation in eight high-growth sectors. This will in large part be supported by a sector not included in this list. Our higher education sector. The Industrial Strategy rightly highlights universities as engines for innovation and skills but defers details as to how to safeguard a sustainable future for the sector to the Post-16 Education and Skills Whitepaper. It is critical that funding and support to universities is put onto a financially robust and sustainable footing as soon as possible”.

University and College Union (UCU) general secretary Jo Grady today said:

“After more than a decade of Tory failure, it is high time for a joined up industrial strategy that will help grow the economy.

“Our members will be delighted to see the Government boosting sorely needed skills funding. This money now needs to go directly into colleges, universities and community education so that learners are provided the high-quality teaching and support that will get them good jobs in these key sectors; driving growth and delivering the industrial strategy.”

 Vivienne Stern MBE, Chief Executive of Universities UK, said:

“Today’s announcement sets a clear direction for the government’s priorities on economic growth in which universities have a vital role to play.
UK universities have forged strong partnerships with businesses across all major growth sectors and are central to developing the workforce and innovations of the future.

“From equipping students with advanced skills to upskilling those already in the labour market, universities are committed to driving economic growth across the UK. Our recent analysis shows that the government’s growth sectors depend on the high-level skills graduates provide, and this need is projected to increase further in the years ahead.

“Our report Why universities are critical to an industrial strategy also outlines how universities offer flexible and technical qualifications to support industry with its training needs. Both reinforce the fact that if the government wants to maximise the potential of its growth sectors, universities are essential to the success of its industrial strategy.

“As anchor institutions in communities nationwide, our universities are not only widening access and opportunities by helping individuals gain new skills or enhance existing ones, but are also centres of research and innovation, driving the UK forward. We’re pleased to see that the government recognises this and will continue to support universities through Higher Education Innovation Funding which is critical to driving knowledge exchange between universities and businesses.”

Five sector plans have also been published today:

• Advanced Manufacturing – Backing our Advanced Manufacturing sector with up to £4.3 billion in funding, including up to £2.8 billion in R&D over the next five years, with the aim of anchoring supply chains in the UK – from increasing vehicle production to 1.35 million, to leading the next generation of technologies for zero emission flight.
• Clean Energy Industries – Doubling investment in Clean Energy Industries by 2035, with Great British Energy helping to build the clean power revolution in Britain with a further £700 million in clean energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to £1 billion.
• Creative Industries – Maximizing the value of our Creative Industries through a £380 million boost for film and TV, video games, advertising and marketing, music and visual and performing arts will improve access to finance for scale-ups and increase R&D, skills and exports.
• Digital and Technologies – Making the UK the European leader for creating and scaling Digital and Technology businesses, with more than £2 billion to drive the AI Action Plan, including a new Sovereign AI Programme and targeting R&D investment at frontier technologies such as cyber security in Northern Ireland, semiconductors in Wales and quantum technologies in Scotland. 
• Professional and Business Services – Ensuring our Professional and Business Services becomes the world’s most trusted adviser to global industry, revolutionising the sector across the world through adoption of UK-grown AI and working to secure mutual recognition of professional qualifications agreements overseas.