The industry response to Monday’s UK Industrial strategy
Posted by: electime 25th June 2025
The Government has published its Industrial Strategy. The white paper, which follows a green paper published last Autumn, sets out a 10-year plan to stimulate investment and activity across 8 sectors (‘IS-8’) deemed to have the highest growth potential. These are: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. It has been published alongside Sector Plans for 5 of the IS-8, with 3 plans to follow.
The Industrial Strategy and Plans outline 4 priority areas to address: easing, speed and long-term stability for business; supporting the UK’s city regions and clusters; supporting our frontier industries; and creating an enduring partnership with business.
Beatrice Barleon, Head of Policy and Public Affairs at EngineeringUK comments:
“The government’s ambitious plans for the economy should go some way to creating certainty for businesses across the UK. We hope that this certainty will in turn support employers’ confidence in investing in skills.
“We welcome the acknowledgement that the success of the Industrial Strategy relies on the UK having a skilled workforce. We are particularly pleased with the recognition of the important role engineering and tech skills have in underpinning multiple sectors. It’s vital that government links sector plans into a wider engineering & technology workforce strategy and avoids silo thinking.
“We are also pleased to see recognition of the importance of gender equity and diversity in the workforce more generally throughout the strategy. Addressing this imbalance will be vital to achieving the ambitions set out.
“We welcome the commitment for Government, and Skills England, to collaborate regionally and across devolved nations and will look to work with Government to support this effort.
“We look forward to working with Government on how to take the strategy forward, for example, how we create more opportunities for 16 to 19-year-olds, and how the Government can reach 1 million students across every secondary school in the UK and ensure they are offered the chance to learn about technology and gain access to new skills training and career opportunities by 2029.”
George Morrison, CEO of Aquaterra Energy, said:
“The government’s Industrial Strategy rightly recognises the UK’s potential to become Europe’s CO₂ storage hub. We have the skills, infrastructure and geology to lead, and CCUS is a real engine for long term industrial growth, not just decarbonisation.
“Projects like the Northern Endurance Partnership and HyNet show progress is under way. Backing for Acorn and Viking adds momentum, alongside the government’s £9.4 billion commitment to CCUS. But it is final investment decisions and detail that can really move the dial. They give industry the certainty to invest and supply chains the confidence to get going. The sooner we bring these projects online, the sooner we unlock jobs, investment and lasting industrial growth.”
Kelly Becker, President, UK & Ireland, Belgium & Netherlands at Schneider Electric, said:
“The Industrial Strategy is an important policy milestone, and it provides much-needed business clarity and confidence for investment. The Government’s focus on reducing energy costs is a welcome relief, as high energy bills are one of the biggest barriers to UK industrial growth. Yet, with the new British Industrial Competitiveness Scheme not being in place until 2027, businesses need support now. The technologies already exist to manage energy and reduce costs – increased uptake of these should be supported to help all businesses, not just those eligible under the new scheme.
“Equally, a focus on electricity networks and associated supply chains is welcome as they are essential to establishing a more secure, resilient energy system. This approach means greater support for domestic manufacturers who supply vital components needed to meet growing demand in the energy transition. In turn, this can drive growth for regional industrial hubs – at Schneider Electric, for example, we have invested nearly £50 million in Yorkshire over the past two years to meet the increased demand for electrical infrastructure to drive the UK’s clean energy transition.
“Efforts to bolster engineering skills will be critical to plugging talent gaps in manufacturing. Together with accelerating digitalisation and electrification, this will prove crucial to energy security, reducing industrial costs, and building lasting economic resilience.”
