The government has launched its new Industrial Strategy to unlock billions in investment and support 1.1 million new jobs over the next decade.

The strategy, developed in partnership with business, will focus on high growth industries and tackle two of the biggest barriers facing UK industry - high electricity prices and long waits for grid connections.

Building on the Spending Review and the recently announced 10-Year Infrastructure Strategy, the Industrial Strategy includes targeted support for the areas of the country and economy that have the greatest potential to grow, while introducing reforms to boost business.

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.”

The strategy includes:

• Cutting 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. From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals. The government is also increasing support for the most energy-intensive firms by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger.
• A new Connections Accelerator Service to streamline grid access for major investment projects — including prioritising those that create high-quality jobs and deliver significant economic benefits.
• Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank financial capacity to £25.6bn.
• Upskilling the nation with an extra £1.2bn each year for skills by 2028-29 and delivering more opportunities to learn and earn in 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.
• Reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators. 
• 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.
• Boosting research and development 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 key sectors, via visa and migration reforms and the new Global Talent Taskforce.
• Deepening economic and industrial collaboration, building on the 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.

The government has also published five sector plans as part of the Industrial Strategy, focussing on key areas of growth. These are:

Advanced manufacturing - up to £4.3bn in funding, including up to £2.8bn in R&D over the next five years.

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 £700m in clean energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to £bn.

Creative industries - a £380m boost for film and TV, video games, advertising and marketing, music and visual and performing arts.

Digital and technologies - more than £2bn to drive the AI Action Plan, including a new Sovereign AI Programme, £187m 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 sector 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. 

Click here to read the Industrial Strategy in full.