UK Government publishes Industrial Strategy 2025

Image courtesy GOV.UK

The Industrial Strategy is a 10-year plan to increase business investment and grow the industries of the future in the UK. The Strategy will make it quicker and easier for business to invest and will provide the certainty and stability needed for long-term investment decisions.

As part of the Industrial Strategy, the Advanced Manufacturing Sector Plan will ensure the UK’s advanced manufacturing sector is at the forefront of tackling the challenges of our era – from decarbonisation to harnessing AI – and ready to seize new commercial opportunities.

The plan’s ambition is to nearly double annual business investment in the sector, giving UK firms an edge in six advanced manufacturing industries of the future (advanced materials, aerospace, agri-tech, automotive, batteries and space), to drive growth across the UK.

Prime Minister Keir Starmer said: "This Industrial Strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.

"In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people’s pockets as part of the plan for change.

"This is how we power Britain’s future – by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear – Britain is back and open for business."

Business and Trade Secretary Jonathan Reynolds said: "We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people. 

"Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people’s pockets and pays for our NHS, schools and military. 

"Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial energy prices globally competitive.  

"Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened and now we’re taking the bold action needed. Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver.”

In a joint statement issued on behalf of Shevaun Haviland, Director General, British Chambers of Commerce, Rain Newton-Smith, Director General, Confederation of British Industry, Aaron Asadi, Chief Executive Officer, Enterprise Nation, Tina McKenzie, Policy and Advocacy Chair, Federation of Small Businesses, Stephen Phipson, Chief Executive Officer, Make UK, Michelle Ovens, Founder, Small Business Britain and Dom Hallas, Executive Director, Startup Coalition, industry showed support for the new Strategy: “The Industrial Strategy launched today marks a significant step forward and a valuable opportunity for the business community to rally behind a new vision for the UK—boosting confidence, sentiment, and enthusiasm for investment.

“From start-ups and small businesses to large corporates, businesses need a more attractive, stable environment that enables faster, easier and more certain investment decisions.

“We welcome the government’s engagement with businesses across the UK. Much of what we’ve shared has been heard and reflected in this strategy. While there’s more to do, we are ready to support the next steps.

“We encourage businesses nationwide to get behind this strategy and champion the UK as the best place to live, work, invest, and do business.”

The publication of the Industrial Strategy comes hot on the heels of last week’s news that British aerospace manufacturers are to benefit from a UK-US trade deal that sees tariffs removed completely, as further progress is made on the UK-US trade deal.

For the first time, the US has committed to reducing tariffs on UK aerospace goods such as engines and similar aircraft parts from the general 10% tariff being applied to all other countries, which is expected to come into force by the end of the month.

This deal is a huge win for the UK’s world-class aerospace sector currently facing additional 10% tariffs, helping make companies such as Rolls Royce more competitive and allowing them to continue to be at the cutting edge of innovation.

Rolls-Royce CEO, Tufan Erginbilgic said: "The tariff exemptions on aircraft, aero engines and parts that have been secured are truly significant. Alongside the anticipated UK Government’s commitment to the sector in the forthcoming Industrial Strategy they will help British aerospace to thrive, creating skilled jobs, exports and delivering growth for the UK economy.

"The US is a vitally important market for Rolls-Royce and we welcome the strengthening of trade ties between the two countries. Aerospace is an engine for growth for the global economy.

"Rolls-Royce plays a critical role in ensuring the UK has highly-differentiated and world-leading capability in aero-engine technology. With strategic investment and long-term planning, it delivers economic growth, skilled jobs and exports."

Thanks to the UK-US deal, the UK is the only country to be exempt from the global tariff of 50% on steel and aluminium.