The United Kingdom has unveiled a comprehensive ten-year industrial strategy, aiming to strengthen its economic foundation by focusing on advanced manufacturing, clean energy, and key innovation sectors. A major highlight of the plan, released on Monday, includes a commitment to reduce electricity costs for thousands of companies starting in 2027. This move is expected to enhance industrial competitiveness and reduce operating costs across sectors.
The government announced up to £2.8 billion in investment over the next five years into research and development programmes, targeting innovation, automation, digitisation, and commercialisation in manufacturing. This marks a significant push to modernise Britain’s industrial base. Additionally, Britain aims to at least double its investment in clean energy industries, targeting an annual spend of over £30 billion by 2035. The plan underscores the country’s commitment to transitioning to a sustainable energy future and enhancing energy security.
Innovative Industries and Global Leadership
Alongside manufacturing and clean energy, the UK is putting strategic emphasis on its creative industries, life sciences, and professional services. The creative sector will benefit from a £150 million growth fund, along with financial incentives to support the screen, music, and video game industries. Meanwhile, the life sciences sector is set to receive significant reforms and funding, including up to £600 million to build a Health Data Research Service. This platform will support a secure, AI-ready infrastructure, positioning Britain as one of the top three global life sciences economies.
For the first time, professional and business services are included in the national industrial strategy. With a focus on enhancing the UK’s global reputation in accountancy, legal services, and management consultancy, the government plans to fund the adoption of artificial intelligence and negotiate mutual recognition of professional qualifications with other countries. Five new professional service hubs will be established in England and Scotland to support this effort and promote export growth.
Driving Technological Excellence and Strengthening EU Ties
The UK is also aiming to establish itself as one of the top three global destinations for developing industrial strategy technology-based businesses. Key reforms will be introduced to stimulate research and development, boost digital skills, and improve regulatory frameworks. The government will prioritise advancements in frontier technologies, including AI, quantum computing, cybersecurity, semiconductors, engineering biology, and next-generation connectivity.
In a post-Brexit context, Britain also signalled renewed cooperation with the European Union, particularly in the areas of energy and carbon pricing. The strategy highlights plans to reduce red tape and foster investment in major infrastructure projects, including those in the North Sea. Discussions will also explore the UK’s participation in the EU’s internal electricity market and continued regulatory collaboration on emerging energy technologies.
This ten-year vision lays the groundwork for the UK to remain competitive, innovative, and sustainable as it navigates economic transformation and global challenges in the years ahead.
