The UK’s modern Industrial Strategy has been revealed by government this week. It sets out a ten-year plan to boost investment, create good skilled jobs and make Britain the best place to do business.
The government says the UK’s Industrial Strategy provides long-term clarity and stability to grow the UK economy.
It will include targeted support for the areas of the country and economy that have the greatest potential to grow. Ministers also promise reforms that will make it easier for all businesses to get ahead.
There’s a focus on eight key high-growth sectors. Some of these sectors – such as creative industries, digital and technologies, and professional and business services – are real sector strengths for Surrey.
Ministers say future funding will focus on driving growth in these high-growth sectors. Investment will also focus on funding for SMEs, upskilling the UK’s workforce and redeveloping strategic sites.
Not all of this funding will be immediately available to Surrey. Some will only be available to those areas with directly-elected mayors, such as West Midlands and Greater Manchester. Surrey is currently on the fast-track programme to devolution – but will not have an elected mayor until after local government reorganisation is completed.
The plan will have a direct impact on Surrey’s economy both now and in the future. It aligns closely with the priorities in the Surrey Economic Growth Strategy.
And we – as part of Surrey County Council – will work with government, businesses and partners to make sure Surrey makes the most of the opportunities – ensuring we meet the demands of our 110,000 businesses while ensuring no one is left behind.
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.”
What is the UK’s modern Industrial Strategy?
The Government’s Industrial Strategy 2025 is also known as Invest 2035. It is a 10-year plan to
drive economic growth by supporting eight high-growth sectors.
The sectors – known as the IS-8 – are advanced manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
The Strategy’s plan of action includes:
- Unlocking billions in finance for innovative business, especially for SMEs. Increasing British Business Bank financial capacity to £25.6 billion, crowding in tens of billions of pounds more in private capital. Additional £4bn for Industrial Strategy Sectors.
- Upskilling the nation with an extra £1.2 billion each year for skills by 2028-29. Delivering more opportunities to learn and earn in our high-growth sectors including new short courses.
- Reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators.
- Supporting 5,500 more SMEs to adopt new technology through the Made Smarter programme while centralising government support in one place through the Business Growth Service.
- Boosting R&D spending to £22.6bn per year by 2029-30 to drive innovation across the IS-8. Allocated more than £2bn for AI and £2.8bn for advanced manufacturing over the next ten years. This will leverage in billions more from private investors.
- Attracting elite global talent to our key sectors, via visa and migration reforms and the new Global Talent Taskforce.
- Slash electricity costs by up to 25% from 2027 for electricity-intensive manufacturers in our growth sectors and foundational industries.
- Deepening economic and industrial collaboration with our partners, building on agreements with Japan, the US, India, and the EU.
- Reducing planning timelines and cutting costs for developers, by hiring more planners, streamlining pre-application requirements and combining environmental obligations.
- Revolutionising public procurement and reducing barriers for new entrants and SMEs to bolster domestic competitiveness.
- Supporting the UK’s city regions and clusters by increasing the supply of investible sites through a new £600m Strategic Sites Accelerator.
Industrial Strategy – sector focus
The plan focuses on 8 sectors where the UK is already strong and there’s potential for faster growth. These are:
- Advanced Manufacturing
- Clean Energy Industries
- Creative Industries
- Defence
- Digital and Technologies
- Financial Services
- Life Sciences
- Professional and Business Services
Each growth sector has a bespoke 10-year plan that will attract investment, enable growth and create high-quality, well-paid jobs.
Five sector plans have been published this week:
- Advanced Manufacturing – up to £4.3 billion in funding, including up to £2.8 billion in R&D over the next five years. Aim of anchoring supply chains in the UK – from increasing vehicle production to 1.35 million, to leading the next generation of technologies for zero emission flight.
- Clean Energy Industries – Doubling investment in Clean Energy Industries by 2035. Total funding for the Great British Energy Supply Chain fund to £1 billion.
- Creative Industries – Maximizing the value of our Creative Industries through a £380 million boost for film and TV, video games, advertising and marketing, music and visual and performing arts. This will improve access to finance for scale-ups and increase R&D, skills and exports.
- Digital and Technologies – Making the UK the European leader for creating and scaling Digital and Technology businesses. More than £2 billion allocated to drive the AI Action Plan. £187 million for training one million young people in tech skills. Targeting R&D investment at frontier technologies.
- Professional and Business Services – Ensuring our Professional and Business Services becomes the world’s most trusted adviser to global industry. Plan to revolutionise the sector across the world through adoption of UK-grown AI. Also working to secure mutual recognition of professional qualifications agreements overseas.
How will the UK’s Industrial Strategy impact Surrey?
The industrial strategy provides a long-term vision for growing the UK economy.
There are clear connections and alignment with the Surrey Economic Growth Strategy 2025-2035, recently published by Surrey County Council.
Surrey has very strong local sector specialisms in some of the key high-growth sectors. This includes professional services, finance, creative and digital. We also have well-established clusters and innovation assets across most of the IS-8 sectors.
We also have demonstrated a commitment to unlocking local economic growth via:
- strategic partnerships, such as the Civic Agreement for Surrey with Surrey’s three leading universities,
- fostering sectoral clusters, such as the Surrey Cyber Security Cluster,
- delivering operational services, such as the Business Surrey Growth Hub, Surrey Careers Hub, and the Made Smarter Adoption programme for the south east
However, Invest 2035 indicates funding will be targeted outside London and the South East – particularly areas which have elected mayors.
Surrey is currently on the government’s fast-track programme to create a directly-elected Mayoral Strategic Authority.
However, Local Government Reorganisation (LGR) needs to take place first. A consultation into how LGR will work for Surrey is currently ongoing.
