The UK Government has unveiled its modern Industrial Strategy, aimed at driving long-term economic growth across eight key sectors, including creative industries, advanced manufacturing, and financial services. Business and Trade Secretary Jonathan Reynolds and Chancellor Rachel Reeves announced the strategy ahead of the International Investment Summit, where global business leaders will gather to explore investment opportunities in the UK.
The Industrial Strategy is designed to create a stable, pro-business environment, with the aim of attracting long-term investment. Reynolds emphasised the government’s commitment to providing stability for investors and industry, saying, “Our modern Industrial Strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next 10 years and beyond.”
To support the strategy’s development, the government has established a new Industrial Strategy Advisory Council. Chaired by Clare Barclay, CEO of Microsoft UK, the council will provide expert advice in collaboration with businesses, trade unions, local leaders, and other stakeholders. The council will be put on a statutory footing to ensure it remains independent and permanent.
The strategy will focus on sectors in which the UK excels, including clean energy, defence, digital technologies, life sciences, and professional services. Reynolds stated that the strategy is designed to secure the future of British industry, promising a ten-year plan for investors to “choose Britain.”
Chancellor Reeves expressed her optimism about the UK’s potential, highlighting the country’s world-class businesses and industries. “This Government is determined to deliver on Britain’s potential so we can rebuild Britain and make every part of the country better off,” she said.
Barclay, in her role as chair of the advisory council, emphasised the importance of planning for future growth. “Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the Advisory Council will play a central role in shaping and delivering this plan,” she said.
The government is inviting businesses to contribute to the development of the strategy through a green paper that will be published alongside the International Investment Summit. The paper will seek input from businesses, investors, trade unions, and other interested parties on how to best drive investment and secure long-term growth in the UK’s most productive sectors.
The strategy also includes plans to establish a new supply chains taskforce, aimed at assessing vulnerabilities in critical supply chains and working with businesses to mitigate risks. This is part of the government’s broader effort to create the conditions necessary for secure growth in the identified sectors.
Industry leaders have welcomed the new strategy. Stephen Phipson, CEO of Make UK, said it provided a “clarity of vision” that had been lacking in recent years. Mark Read, CEO of WPP, and John Harrison, Chairman of Airbus UK, also expressed their support for the government’s focus on key growth-driving sectors and innovation.
The full membership of the Industrial Strategy Advisory Council will be announced in the coming weeks.
