The UK government has launched a bold new 10-year industrial strategy, aimed at revitalizing domestic manufacturing, lowering energy costs, and positioning Britain’s key sectors for long-term global competitiveness. The strategy includes measures that could reduce electricity bills by up to 25% for over 7,000 UK-based manufacturers, while also laying out a roadmap for workforce development, innovation funding, and industrial planning reform.
Lowering the Energy Burden on Industry
A centrepiece of the plan is the British Industrial Competitiveness Scheme, which will exempt thousands of manufacturers from specific environmental and backup energy surcharges. These exemptions — expected to reduce costs by up to £40 per megawatt-hour starting in 2027 — aim to correct one of the long-standing concerns of UK-based producers: some of the highest industrial electricity prices in the developed world.
A separate scheme for energy-intensive industries like steel, glass, and chemicals will be expanded as well. These firms, currently receiving a 60% discount on network charges, will see that increase to 90% by 2026, under the government’s British Industry Supercharger program.
Building a Long-Term Industrial Framework
Prime Minister Sir Keir Starmer described the strategy as essential to offering UK businesses “long-term certainty” in an unpredictable global climate, citing the need to mitigate shocks from overseas, including conflicts and energy price spikes.
A major aim is to streamline the connection of new factories to the energy grid, often a bureaucratic bottleneck for new investment.
The government insists that these energy-related measures won’t require new taxes or borrowing. Instead, adjustments to existing green energy support mechanisms and potential revenue from the UK’s re-engagement with carbon trading schemes in Europe will fund the reforms.
Investing in Skills, Innovation & Global Talent
Beyond energy, the strategy outlines several broader ambitions:
- £1.2 billion per year in skills funding by 2028–29 to reduce dependency on foreign labour.
- A drive to attract top global talent via reformed visa policies.
- £22.6 billion in annual R&D investment by the end of the decade, including £2 billion earmarked for AI development.
- Recruitment of more planners and regulatory streamlining to accelerate infrastructure and industrial development.
Sector Focus: Where the UK Wants to Win
The government has identified eight sectors with high growth potential:
- Advanced manufacturing
- Clean energy
- Creative industries
- Defence
- Digital and emerging technologies
- Financial services
- Life sciences
- Professional & business services
This targeted approach is designed to attract international capital to areas where the UK already possesses a competitive edge.
A Mixed Reception: Applause and Frustration
Industry leaders have cautiously welcomed the strategy. Make UK, which represents manufacturers, praised it as a much-needed intervention addressing “crippling energy costs” and workforce challenges.
Similarly, trade unions have welcomed the relief for manufacturers, noting the competitive disadvantage UK firms have faced compared to their European counterparts.
However, not all sectors feel included. The hospitality and retail industries, both major employers, were notably left out of the energy relief plans — sparking criticism from UKHospitality, which called the omission “disappointing” given the sectors’ massive economic footprint.
Business Secretary Jonathan Reynolds responded by emphasizing that the strategy isn’t about picking winners or losers, but rather about creating globally competitive environments that benefit all industries in the long term.
365247 Media Analysis: A Foundation for Industrial Renewal?
This 10-year plan represents a rare attempt to integrate energy reform, economic planning, and industrial policy under one strategic umbrella. If executed effectively, it could reset the operating conditions for Britain’s manufacturing backbone — improving competitiveness, attracting foreign direct investment, and creating more sustainable domestic supply chains.
Yet, much hinges on the execution. Delays in consultation, the complexity of grid reforms, and global uncertainties could test the strategy’s resilience. The absence of support for consumer-facing industries — especially as they battle high energy and staffing costs — could also dilute the wider economic impact.
Still, this is the clearest signal in years that the UK government sees industrial competitiveness as a national priority— and is willing to use structural levers to shape the future of British business.
