London, UK – The United Kingdom Government today, Monday, June 23, 2025, published its comprehensive modern Industrial Strategy, a landmark 10-year blueprint designed to significantly boost business investment and accelerate economic growth across eight key sectors of the British economy. Prime Minister Keir Starmer hailed the strategy as a “turning point” for the nation’s industrial landscape, outlining a series of measures aimed at fostering innovation, reducing costs, and enhancing competitiveness on the global stage.
Boosting Innovation and Investment
A central pillar of the strategy is an ambitious increase in research and development (R&D) spending. The government has committed to raising R&D expenditure to a substantial £22.6bn per year by the 2029-30 fiscal year. This includes specific, targeted investments over the next decade, with over £2bn earmarked for advancements in Artificial Intelligence (AI) and a further £2.8bn allocated to bolster advanced manufacturing capabilities.
Cutting Energy Costs for Industry
Recognizing the impact of high energy prices on competitiveness, the strategy includes plans to slash electricity costs for thousands of energy-intensive businesses. The initiative aims for a significant reduction of between 20% and 25% in electricity expenses for eligible companies. From 2027, a key mechanism for achieving this will be the new British Industrial Competitiveness Scheme. This scheme is designed to reduce electricity costs by up to £40 per megawatt hour and is expected to benefit over 7,000 businesses operating in crucial manufacturing sectors such as automotive, aerospace, and chemicals.
Bolstering Business Finance
Access to finance is a critical enabler for growth, and the strategy addresses this by significantly enhancing the capacity of the British Business Bank. The bank’s total financial capacity has been increased to £25.6 billion. Furthermore, the bank has committed £6.6bn of new capital explicitly aimed at boosting growth across the UK economy. This injection of public capital is strategically intended to “crowd in” tens of billions of pounds of additional private capital, thereby amplifying the overall financial support available to businesses.
The strategy also indicates forthcoming reforms to the British Business Bank’s governance and financial arrangements, which are anticipated by the end of the current financial year. These reforms are expected to further streamline the bank’s operations and effectiveness in delivering its mandate.
Targeted Sector Development
Complementing the overarching strategy, five detailed sector plans were published today. These plans provide tailored roadmaps for growth within specific industries. Among the sectors covered are the Clean Energy Industries and the Creative Industries, both identified as having significant potential for job creation and economic expansion.
Specifically, the strategy allocates an additional £700 million for clean energy supply chains. This significant investment brings the total funding available through the Great British Energy Supply Chain fund to £1 billion, underscoring the government’s commitment to developing domestic capacity in renewable energy technologies. The Creative Industries are also set to receive a substantial boost, with a £380 million package aimed at supporting innovation, skills, and market access within this vital sector.
The government also announced that a dedicated sector plan for the financial services industry is scheduled for publication in July, highlighting the strategic importance of this sector to the UK economy.
Modernising Regulation and Attracting Talent
The strategy acknowledges the need for an agile regulatory environment to support emerging and fast-growing industries. Plans for regulatory changes are underway to facilitate innovation and investment in sectors such as biotechnology, Artificial Intelligence (AI), and autonomous vehicles. These reforms are intended to provide clarity and certainty for businesses operating in these dynamic fields.
Recognizing that talent is key to future success, the strategy also includes significant reforms to the visa and migration systems. These changes are aimed at attracting leading international experts and entrepreneurs to the UK. A new Global Talent Taskforce is being established to drive these reforms and ensure the UK remains a destination of choice for global talent in critical industries.
The comprehensive nature of the modern Industrial Strategy, with its focus on targeted investment, cost reduction, enhanced finance, sector-specific support, and regulatory reform, signals a concerted effort by the UK Government to navigate future economic challenges and secure long-term prosperity across the nation over the next decade.
