Making the UK the best place to do business: Modern Industrial Strategy set to deepen global collaboration

• Strategy developed in partnership with business, marking a new era of collaboration between government and high growth industries.
• New Industrial Strategy to unlock billions in investment and support 1.1 million new well-paid jobs over the next decade.
  *New Global Talent Taskforce and £54m fund will attract world-class researchers, top talent and their teams to the UK.
• Electricity costs for thousands of businesses to be slashed by up to 25%.

The plan focuses on 8 high growth sectors, including Advanced Manufacturing, Clean Energy Industries, Digital and Technologies, Financial Services and Life Sciences, where there is potential for faster growth.

The modern Industrial Strategy unveiled today, Monday 23 June, sets out a ten-year plan to boost investment, create good skilled jobs and make Britain the best place to do business.

It includes targeted support for the areas of the country and economy that have the greatest potential to grow, while introducing reforms that will make it easier for all businesses to get ahead.

The Strategy’s bold plan of action includes:

• Slash electricity costs by up to 25% from 2027 for electricity-intensive manufacturers in growth sectors and foundational industries in their supply chain, bringing costs more closely in line with other major economies in Europe.

• Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank financial capacity to £25.6 billion, crowding in tens of billions of pounds more in private capital. The includes an additional £4bn for Industrial Strategy Sectors, crowding in billions more in private capital. By investing largely through venture funds, the BBB will back the UK’s most high-growth potential companies.

• 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 migration reforms and the new Global Talent Taskforce. The Taskforce and a £54m Global Talent Fund will support top talent to relocate to the UK.

• Deepening economic and industrial collaboration with our partners, building on our Industrial Strategy Partnership with Japan and recent deals with the US, India, and the EU.

• Reducing planning timelines and cutting costs for developers, by hiring more planners, streamlining pre-application requirements and combining environmental obligations, removing burdens on businesses as well as accelerating house building. 

• Revolutionising public procurement and reducing barriers for new entrants and SMEs to bolster domestic competitiveness.

• Supporting the UK’s city regions and clusters by increasing the supply of investible sites through a new £600m Strategic Sites Accelerator, enhanced regional support from the Office for Investment, National Wealth Fund, and British Business Bank, and more.

• Upskilling the nation with an extra £1.2 billion each year for skills by 2028-29, and delivering more opportunities to learn and earn in our high-growth sectors including new short courses in relevant skills funded by the Growth and Skills Levy and skills packages targeted at defence digital and engineering.

• Supporting 5,500 more SMEs to adopt new technology through the Made Smarter programme while centralising government support in one place through the Business Growth Service.

The plan focuses on 8 sectors where the UK is already strong and there’s potential for faster growth: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Each growth sector has a bespoke 10-year plan that will attract investment, enable growth and create high-quality, well-paid jobs. 

Five sector plans have been published in tandem:

Advanced Manufacturing

Backing the 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, 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 the UK’s 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, £187 million for training one million young people in tech skills 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 the UK’s 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.

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.

Regarding the launch of the New Industrial Strategy, British Ambassador to Chile, Louise de Sousa, said:

The UK’s modern Industrial Strategy is our ten-year plan to strengthen infrastructure, reduce costs for businesses and simplify regulation.

With a highly skilled workforce and unrivalled global business connectivity, the UK provides an ideal location to scale, invest and grow business, by accessing the G7’s lowest corporation tax and a generous R&D tax.

This being and internation strategy from the start, the plan will provide local businesses, entrepreneurs and innovators the stability and ease needed to make long-term investment decisions, which, in turn will help strengthening the already strong economic ties between UK and Chile.

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 the UK Government’s Plan for Change.