The UK Government has launched its National Industrial Strategy, a comprehensive 10-year plan aimed at driving business investment, innovation, and sustainable growth across key sectors of the economy. Launched on 23 June 2025, this strategy is designed to create a more competitive, resilient, and prosperous business environment by addressing structural challenges and supporting industries with the greatest growth potential.

What Is the National Industrial Strategy and Why Does It Matter for UK Business?

The strategy sets out the government’s vision to make the UK one of the best places globally to start, grow and invest in business. It focuses on improving conditions for companies to operate and thrive by reducing regulatory burdens, cutting electricity costs by up to 25% for energy-intensive manufacturers, simplifying planning procedures, and boosting research and development (R&D) spending to over £22 billion annually by 2030. It also aims to ensure economic security and resilience in an uncertain global environment.

Crucially, the strategy identifies eight priority sectors—referred to as the “IS-8”—that offer the highest growth potential: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. Government support and targeted policies will be tailored for these sectors to unlock investment and innovation.

How Will the Strategy Support UK’s Transition to Net Zero and Clean Energy?

Clean energy industries are a key pillar of the Industrial Strategy, reflecting the UK’s commitment to net zero carbon emissions by 2050. The government has pledged a £1 billion Clean Energy Supply Chain Fund and ongoing investment in innovative clean energy technologies, including solar photovoltaic (PV) systems and battery storage which are critical for renewable energy deployment across residential and commercial sectors.

By lowering operational costs such as electricity prices and speeding up grid connection timelines through a new Connections Accelerator Service, the government aims to make it easier for clean energy companies to expand and for businesses and homeowners alike to adopt solar and battery systems. This approach supports decarbonisation while creating green jobs and growing regional clusters.

What Are the Most Significant Investments Highlighted in the Strategy?

The strategy commits substantial financial resources across multiple fronts including:

• Over £25.6 billion in finance via the British Business Bank to improve access to capital for startups and scale-ups by 2030, with £4 billion specifically targeting growth sectors within the industrial strategy.
• £2 billion allocated for Artificial Intelligence and £2.8 billion for advanced manufacturing R&D over the next five years, underscoring the focus on innovation.
• A £600 million Strategic Sites Accelerator Fund to prepare land for major industrial projects and a £500 million Local Innovation Partnerships Fund to foster growth in key city regions and clusters.

These investments reflect the government’s desire to tackle productivity gaps, skill shortages, and high energy costs that have hampered UK manufacturing and innovation.

What Challenges Does the Strategy Aim to Address in UK Industry and Manufacturing

The UK’s manufacturing sector has faced several systemic issues, including a skills crisis, prohibitively high energy costs, and difficulties accessing capital for new innovations. The National Industrial Strategy explicitly seeks to counter these with a trio of strategic interventions:

• Enhancing skills funding by an extra £1.2 billion annually by 2029, focusing on defence, digital, and engineering capabilities.
• Reducing electricity costs for energy-intensive industries by up to 25% from 2027 to match international competitiveness.
• Increasing business investment support through expanded financial tools and targeted policy certainty to encourage long-term capital commitments.

How Does the Strategy Plan to Boost Regional Growth and Economic Resilience

A strong emphasis of the strategy is placed on place-based growth, recognising that economic success depends on thriving city regions and industrial clusters. The government aims to allocate funding to support high-potential regions through infrastructure improvements, innovation partnerships, and local talent development.

This vision is aimed at reducing regional economic disparities and spreading prosperity more evenly across the UK. It is reflected in initiatives like the Strategic Sites Accelerator and Local Innovation Partnerships, which encourage companies to invest in areas with established or emerging industry clusters.

How Will Businesses Experience Changes in Regulation and Investment Conditions?

The government pledges to simplify regulations and reduce planning timelines to make investment conditions more predictable and conducive for businesses. Key measures include:

• Reducing regulatory administrative costs by 25%, streamlining overlapping regulatory requirements.
• Launching a new Office for Investment to offer tailored investor support.
• Amending the National Security and Investment Act 2021 to keep safeguards balanced without unnecessary burdens on innovation and growth.

This streamlined approach is designed to build confidence in stakeholders and enable faster delivery of industrial projects, including advanced manufacturing facilities and renewable energy infrastructure.

What Role Will Technology and Innovation Play in the Industrial Strategy?

Technology and innovation remain the backbone of the strategy. It highlights significant commitments to advance UK capabilities in digital technology, AI, and life sciences, recognising their potential for high-value growth and global competitiveness. For example:

• More than £4 billion in growth capital for technology companies scaling up operations in the UK.
• A new Sovereign AI Unit and investment in a supercomputer facility to bolster AI research and applications.
• A permanent Industrial Strategy Council enshrined in law to monitor progress and maintain focus on innovation objectives over the next decade.

This fosters a government-industry partnership aimed at continuous advancement and uptake of frontier technologies that will underpin future industrial success.

Get in touch

If you are looking to learn more about the UK Government’s National Industrial Strategy and how it could impact your business or sector, or if you want to explore innovative solutions such as solar PV systems and battery storage to future-proof your energy use, please get in touch. Atlantic Renewables' team of experts is ready to help guide you through the opportunities created by this new industrial era. Call us on 0161 207 4044 and start taking advantage today!