The UK government unveiled a new 10-year industrial strategy designed to boost investment, cut electricity costs for certain sectors and create 1.1 million well-paid jobs across key sectors.
More than 7,000 electricity-intensive manufacturing businesses will have their electricity costs cut by up to 25% under the British Industrial Competitiveness Scheme. Firms in sectors such as automotive, aerospace and chemicals will benefit from exemptions on levies and increased discounts on electricity network charges for heavy industries like steel and glass.
To try and accelerate growth, the government will launch a gird connections accelerator service by the end of 2025 to streamline grid connections for major projects, also supported by new planning powers to reserve grid capacity for strategically important developments.
The strategy aims to unlock billions in finance, increasing the British Business Bank’s capacity to £25.6 billion to back innovative companies, particularly SMEs. It will also boost skills investment by £1.2 billion annually by 2028-29 and reduce regulatory burdens by 25%.
Support for research and development (R&D) spending will rise to £22.6 billion annually by 2029-30, with significant funding for AI, advanced manufacturing, and biotechnology.
The government has identified eight priority super-sectors: advanced manufacturing, clean energy, creative industries, defence, digital & technologies, financial services, life sciences, and professional & business services, each with a tailored plan to attract investment and create high-quality jobs. Tweaks to visa and migration reforms will aim to attract global talent to support growth sectors.
Industry leaders welcomed the strategy.
CBI chief executive Rain Newton-Smith said it was "a significant leap forward in the partnership between government and business", while highlighting more competitive energy prices, fast-tracked planning decisions and support for innovation as providing "a bedrock for growth".
Stephen Phipson, CEO of manufacturers' organisation Make UK called it "a much-needed step forward" to tackle energy costs, skills shortages, and capital access.
Shevaun Haviland, director general of the British Chambers of Commerce, said firms have "sounded the alarm about uncompetitive energy bills for years" and the launch of the strategy is "a welcome blueprint for policymakers and business" to create a "stable environment that enables faster, easier and more certain investment decisions".