The UK will go “toe to toe” with the US on economic growth as part of efforts to raise living standards, Business Secretary Peter Kyle said on Wednesday, as he set out the government’s ambitions to business leaders in London.
Speaking at Bloomberg’s headquarters, Kyle told executives from companies including Alphabet, Meta and Ford that the government’s Modern Industrial Strategy would double down on the UK’s world-leading strengths in 2026, with a focus on scaling up businesses while keeping them anchored in Britain. He said the UK had delivered the second-highest growth in the G7 during the first three quarters of last year, but argued more was needed to match the pace of the US economy.
Kyle said competing with the US would have a direct impact on wages, disposable income and living standards for families, and welcomed what he described as strong early progress on the Modern Industrial Strategy. A new quarterly update confirmed £79bn of investment commitments and 50,000 well-paid jobs secured in the past quarter alone.
He also announced three new appointments to the Industrial Strategy Advisory Council: Amelia Gould, General Manager for Maritime at Helsing; Keith Anderson, CEO of Scottish Power; and Dana Strong, CEO of Sky. Kyle said that while the government had made long-term decisions on infrastructure such as rail, roads and runways, it also needed to act with urgency in the short term by taking risks and backing industries with the greatest growth potential.
The Business Secretary outlined plans to support British firms to scale up, including new investment from the British Business Bank and additional support from UK Export Finance, alongside a commitment to reduce regulatory burdens. He said the government had already cut £230m in administrative costs for businesses and highlighted measures to reduce energy prices, including the Supercharger and the British Industrial Competitiveness Scheme.
The reception came ahead of Kyle’s attendance at the World Economic Forum in Davos next week, where he is expected to promote the UK as a leading destination for investment. Other attendees at the London event included senior figures from the CBI and BCC, Octopus Energy, Heathrow, BlackRock, McKinsey, BP and AstraZeneca.
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