The government’s modern Industrial Strategy has been published today (June 23, 2025), setting out a ten-year plan to boost investment, create good skilled jobs, focussing on eight sectors where the UK is already strong and there is potential for faster growth.

The strategy promotes business investment and growth and is designed to 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.”

University of Sheffield AMRC welcomes new strategy

Ben Morgan, interim chief executive officer at the University of Sheffield AMRC said it is a welcome and important step by the government that ‘puts the advanced manufacturing sector rightly centre stage for driving growth across the UK.’

He said: “The University of Sheffield AMRC is proud of our story of impact on the core themes of the Industrial Strategy - growth, productivity and workforce development as the lifeblood of a vibrant sector. We have a lot more to offer for the future and this Industrial Strategy is an important contribution to a better tomorrow.

“The focus on innovation and the importance of R&D are welcome messages from the Government. Whether for defence, clean energy, aerospace, automotive or food and drink, innovation sits at the heart of competitive firms building brilliant products with agile, high quality processes across the UK. We look forward to working with our High Value Manufacturing Catapult colleagues and leaning into this future with pride and confidence.”

The strategy’s plan of action includes:

• Slash electricity costs by up to 25 per cent 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. This 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 per cent 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 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.

Focus on eight key growth sectors

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 ten-year plan that will attract investment, enable growth and create high-quality, well-paid jobs. Five sector plans have been published today including advanced manufacturing,clean energy industries, and digital and technologies.

Business and Trade Secretary Jonathan Reynolds said the Modern Industrial Strategy will ‘ensure the UK is the best country to invest and do business’. He said: “Not only does this strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial electricity prices more competitive.”

Energy Secretary Ed Miliband said the strategy is ‘unlocking the potential of British industry’ by slashing industrial electricity prices in key sectors. He said: “We’re also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear. This will deliver on our clean power mission and Plan for Change to bring down bills for households and businesses for good.”

Read more on the Industrial Strategy and sector plans.