The UK government has launched its highly-anticipated Industrial Strategy, ahead of a significant investment summit taking place in London on Monday. Unveiling its plans earlier today, the government said the Industrial Strategy ‘will drive long-term growth in key sectors that is sustainable, resilient and distributed across the country’, with the Business Secretary promising to ‘give investors a ten-year plan to choose Britain’.
The government’s Industrial Strategy will focus on eight ‘growth-driving sectors’: advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.
Business and Trade Secretary, Jonathan Reynolds, and the Chancellor of the Exchequer, Rachel Reeves, have written a green paper to kickstart delivery of the Industrial Strategy. The paper will be published tomorrow, on the day of the International Investment Summit, which will bring together UK leaders, high-profile investors and businesses from across the world. There, Reynolds is expected to tell delegates the Industrial Strategy will put Britain back on the global stage and help attract investment into the most productive parts of the UK economy.
Businesses up and down the country will be invited to respond to the Industrial Strategy Green Paper, which will provide stakeholders with the opportunity to inform the strategy’s continued development and ensure it delivers tangible impact to people and communities right across the UK.
Views are sought from business, international investors, unions and any other interested parties, on the overall vision, approach to growth sectors and the policy levers needed to drive investment.
The government will also establish a new supply chains taskforce which will work to assess where supply chains critical to the UK’s economic security and resilience – including those in the growth driving sectors outlined in the industrial strategy – could be vulnerable to disruption. The taskforce will ensure that government works with business to address these risks, building the conditions required to deliver secure growth.
Microsoft UK chief to head Industrial Strategy Advisory Council
Alongside the release of the green paper, the government will also announce that Clare Barclay, CEO of Microsoft UK, will chair the Industrial Strategy Advisory Council. The Council will inform the development of the Industrial Strategy through its expertise and latest evidence, working with business, trade unions, devolved governments, local leaders, academia and stakeholders.
In the King’s speech, the government committed to putting the council on a statutory footing, giving it powers and responsibilities and ensuring it will be permanent and independent.
Speaking about her new role, Clare Barclay said: “As Chair of the Industrial Strategy Advisory Council, I will ensure the council provides a clear and strong voice on behalf of business, nations, regions and trade unions, as we invest for the future to ensure that our prosperity is underpinned by robust growth in key sectors right across the country.
“Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the Advisory Council will play a central role in shaping and delivering this plan”.
Business and Trade Secretary, Jonathan Reynolds MP, said: “Our modern Industrial Strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next ten years and beyond.
“This is the next step in our pro worker, pro business plan which will see investors and workers alike get the security and stability they need to succeed.
“Clare’s wealth of talent and experience will help ensure the Industrial Strategy delivers its mission of unleashing the potential of high productivity sectors to spur growth, spread wealth, and drive-up employment across the UK.”
Chancellor of the Exchequer, Rachel Reeves MP, added: “I have never been more optimistic about our country’s potential. We have some of the brightest minds and greatest businesses in the world. From the creative industries and life sciences to advanced manufacturing and financial services.
“This government is determined to deliver on Britain’s potential so we can rebuild Britain and make every part of the country better off.”
Industry reactions to the announcement of an Industrial Strategy
Make UK CEO, Stephen Phipson, said: “We live in a world which is massively different to a decade ago and simply leaving the economy and, industrial strategy, to the free market is an ideology which is long past its sell by date. This is a welcome first step in addressing the achilles heel of the economy which has left the UK an outlier among advanced countries. It sets out a clarity of vision for how the resources of government and, in particular, each department can be convened towards a single objective of long-term growth across all regions.”
Katherine Bennett CBE, CEO of the High Value Manufacturing Catapult, said: “The UK needs a bold and ambitious industrial strategy. With the stability it provides, businesses can harness innovation to drive productivity, scale-up supply chains, transform their approach to skills and compete on a global stage.
“The UK manufacturing sector is the engine behind our net zero ambitions and sustainable economic growth; the green paper, with its recognition of advanced manufacturing, will provide an invaluable framework for the next ten years.
“This roadmap and the subsequent industrial strategy will enable the High Value Manufacturing Catapult, with the support of Innovate UK, to accelerate the industrial transformation the UK needs to attract major investment, secure high-value jobs and build national resilience.”
Andrea Wilson, Director at Hone-All Precision and head of the Minister for Manufacturing Campaign added: “It is heartening to see terms such as ‘long-term’ included within the green paper for our new industrial strategy.
“That the Industrial Council will become a statutory part of government is fantastic news for the industry as it will hopefully lead to more of a cross-party type agreement for the critical components of the UK economy.
“I’m also intrigued to learn more about the Supply Chain Taskforce as for too long, we’ve allowed gaps to appear in what UK Plc can supply. From what I’ve seen so far, this is a great opportunity to ensure a strategic and cohesive approach to UK manufacturing.
“I just hope that the government will not return to a ‘one size fits all’ approach and will ensure that the 99% of manufacturers in the UK, the superb SME community, will be heard, recognised and supported within the plans being developed.”
Simon Connell, Chief Executive of the Baker Dearing Educational Trust added: “This industrial strategy provides a clear plan for government, businesses and educators on how to break down barriers to opportunity and drive economic growth.
“Baker Dearing especially welcomes the strategy’s honest assessment of the UK’s skills system, which is far from meeting the needs of employers and the economy.
“Too few young people are leaving school with even a basic understanding of how to secure employment and how to behave in the workplace. The deplorable decrease in entries to technical GCSE and A Level subjects since 2010 will also have prevented school students from progressing onto higher STEM learning and apprenticeships.
“The government must ensure this strategy is supported by the ongoing curriculum and assessment review. The findings of which ought to encourage schools to deliver a syllabus that is as rich in technical and employability skills as it is knowledge.
“From the network of 44 technical education secondary schools – University Technical Colleges – that we support, Baker Dearing knows how high-quality technical education can open opportunities for young people from any background.”
Dr Graham Hoare, Chief Executive Officer at the Manufacturing Technology Centre (MTC), said: “We welcome the launch of this important industrial strategy which will have huge implications for UK manufacturing.
“The Prime Minister this morning said that the industrial strategy is ‘not about picking winners’. I believe it needs to be about creating winners. That requires the strategy to really make a difference in three areas: creating the confidence to invest; nurturing the skilled people to make it happen; and developing the infrastructure to deliver it.
“These will give us an industrial strategy that not only anchors emerging sectors, but drives growth, providing the UK with the global competitiveness and security that is so urgently required.
“As an organisation which is about the future of work, MTC looks forward to working with the government on delivering a strategy that creates sustainable jobs, growth and a manufacturing sector that will again be the envy of the world.”
Professor Mike Capaldi, Chair of Driving the Electric Revolution Industrialisation Centres (DER-IC), added: “DER-IC welcomes the Industrial Strategy green paper’s focus on advanced manufacturing and clean energy as key to future economic resilience. Power electronics, machines and drives (PEMD) play a crucial role in these sectors, from transportation to energy generation and industrial systems.
“Our partnerships demonstrate the value of collaboration between academia and industry, accelerating the commercialisation of technologies, reducing risks, and improving time to market for critical products. As the strategy develops, we hope to see PEMD recognised as a vital growth sector. With targeted support for strategic networks like DER-IC, the UK can enhance its innovation, strengthen supply chains, and secure global competitiveness by fostering relationships between academia and industry. DER-IC looks forward to contributing to this ambition.”
Chris Spray, Customer Success Director at Lineview comments: “The Industrial Strategy’s focus on advanced manufacturing is a step in the right direction, but the real challenge will be how effectively investment is directed. Right now, businesses are sitting on vast amounts of untapped data—only 21% of companies that handle digitalised data are using it to generate insights, and just 2% are leveraging it for AI or automated decision-making. If we don’t take this moment to change this, the potential of data and the role it can play in shaping the future of industry, will continue to go to waste.
Pairing targeted investment with improved labour laws and the reduction of zero-hours contracts can transform data-driven technology into a key driver of productivity and innovation. Automation and advanced processes are essential—not just to boost productivity but to keep the UK competitive. The strategy must ensure that businesses have the tools they need to modernise and grow sustainably.”
Richard Cruden, CEO at Vistech Cooling Systems: “The Industrial Strategy sets a bold course, but one key opportunity that deserves more attention is the efficiency of core systems. Often lurking in the background, outdated systems are quietly undermining energy efficiency and resilience. Tackling these hidden inefficiencies could unlock huge potential across sectors like advanced manufacturing. As the UK looks to future-proof its economy, addressing these often-overlooked areas could be the difference between incremental change and a true leap forward in industrial performance.”
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