Industrial strategy to make Britain the best place to do business

The government’s industrial strategy has set out a ten-year plan to boost investment, create good skilled jobs and make Britain the best place to do business.

The strategy promotes business investment and growth and will 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.

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.

Katherine Bennett CBE, CEO of the High Value Manufacturing Catapult, said:

The publication of the modern industrial strategy is a pivotal step towards transforming the UK into an industrial powerhouse.

“The High Value Manufacturing Catapult has a proven track record of turning policy into progress, investing more than £1 billion in a nationwide network of research and development facilities. We now have the opportunity to go further and faster, scaling our impact in the regions in which we operate and deepening our commitment to driving national economic growth.

“As partners to government we have helped shape the strategy and the advanced manufacturing sector plan. We now look forward to supporting delivery to ensure the UK has the people, the places and the potential to be a net zero manufacturing superpower.

The industrial strategy will include 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 plan of action includes:

• Slash electricitycosts by up to 25% from 2027 for electricity-intensive manufacturers in our 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.
• 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.
• 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 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.
• 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.

Business and Trade Secretary Jonathan Reynolds said:

We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people.

“Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened, and now we’re taking the bold action needed. Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver.

The plan focuses on eight 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.

Read the industrial strategy here.

Read the advanced manufacturing sector plan here.