The government has today (23 June) released its long-awaited Industrial Strategy, with Labour ministers talking up a new approach to business development and support for key sectors including manufacturing, professional services and the creative industry.
The ten-year plan purports to improve the UK’s business climate, freeing up the economy and making it more resilient to global change.
Prime minister, Sir 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.”
New economic approach
Department for Business and Trade (DBT) secretary, Jonathan Reynolds, said on social media that the world was “entering a new era” that “needs a new economic approach”.
The plan is predicated around supporting the eight sectors that have the highest growth potential. The government will also target growing city regions and clusters where these sectors are based, with improved support for local authorities, new investment sites and a strengthening of connections between these areas.
These areas include defence, advanced manufacturing, professional services and creative industries. Each area is set to receive additional financing for specific booster projects.
Additionally, each sector will receive a dedicated plan. Several have already been released – including one for advanced manufacturing that discusses the priority sectors of automotive, batteries and agri-tech – with more promised over the summer.
Trade deals
The government has also include trade deal negotiations within the strategy publication, as well as the sectors that will receive additional trade support in the form of dedicated ambassadors and promotional campaigns.
Among the promises made are a set of pilots to accelerate the adoption of electronic trade documents, building on deals already agreed with the US and EU, and expanding the financial portfolio of the UK Export Finance agency.
Energy
One common criticism of the UK’s business environment is that energy is disproportionately expensive compared to the US and several European nations. The government conceded that UK manufacturers currently pay high rates of electricity, hurting the country’s growth potential.
A section of the Industrial Strategy focuses on a ten-year plan to reduce prices and waiting times for connections to the grids.
A British Industrial Competitiveness Scheme will come into effect from 2027, and will exempt over 7,000 energy-intensive businesses from various levies and tariffs. The exact eligibility requirements will be released at a later date.
The most energy-intensive firms in key manufacturing areas like steel, chemicals and glass, will get additional support from 2026.
Reaction
A joint statement from business leaders, including Dom Hallas, executive director of the Startup Coalition, and Make UK CEO Stephen Phipson, said that the strategy was “a significant step forward and a valuable opportunity for the business community to rally behind a new vision for the UK.”
Sharon Graham, general secretary of trade union Unite, described the plan as “one of the most important measures the government has undertaken to protect jobs and improve job security.”
