The United Kingdom has announced a transformative new industrial strategy designed to boost competitiveness and foster long-term economic growth by reducing energy costs and enhancing business support across key sectors.

 

Set to take effect starting 2027, the plan includes a targeted reduction of electricity bills by up to 25% for over 7,000 energy-intensive manufacturers. The move is part of a broader 10-year strategy (2025–2035) aimed at positioning British industries for sustainable growth and global leadership.

 

Business Secretary Jonathan Reynolds emphasized that the strategy directly addresses longstanding concerns from the business community regarding high energy expenses and workforce skill gaps. “This government has listened to industry needs and is delivering a future-focused plan to empower our economy,” Reynolds stated.

 

Key highlights of the strategy include:
  • Energy Relief for Manufacturers: Electricity-intensive businesses will be exempted from levies such as the Renewables Obligation, significantly easing operational costs.

  • Sectoral Investment Plans: Five focused plans for sectors like advanced manufacturing, creative industries, and clean energy are being launched to drive innovation and targeted development.

  • Support for SMEs: The British Business Bank will see expanded investment capacity to support small and mid-sized enterprises (SMEs).

  • Skills and Innovation Funding: An additional £1.2 billion annually will be invested in workforce upskilling by 2028–29, alongside increased support for R&D initiatives.

  • Streamlined Regulation: The strategy outlines efforts to reduce regulatory burdens and accelerate planning processes, fostering a more agile business environment.

 

Industry groups have welcomed the announcement. Make UK called it a “giant and much-needed step forward,” while the Confederation of British Industry praised it as a “positive signal” that lays the foundation for sustained growth.

 

With a clear focus on competitiveness, sustainability, and innovation, the UK’s new industrial strategy is set to bolster business resilience and secure long-term prosperity.

 

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