The UK's Modern Industrial Strategy: A 10 year plan

1 Brief introduction
2 Strategic areas
3 Previous consultation
4 Key elements of the strategy in summary
5 Reactions and responses
6 Related articles on Designing Buildings

[edit] Brief introduction

'The UK's Modern Industrial Strategy' published June 2025 describes the UK as a major global economy, known for its stability, openness, and leadership in sectors such as research, technology, and finance. It notes however, that global shifts in trade, supply chains, and industrial competitiveness have created challenges, which include the cost-of-living crisis which affects British families. In response, the UK Government has launched a long-term Industrial Strategy aimed at restoring economic dynamism, attracting international investment, and ensuring sustainable growth across the country to ease such pressures in the long term.

[edit] Strategic areas

This strategy emphasises the importance of fostering business confidence and focusses on eight sectors where the UK is already strong and there's potential for faster growth, these are:

The Government aims to boost business investment, support small and medium-sized enterprises, and scale up domestic innovation, with a regional approach to be taken to develop sector-specific clusters that drive productivity and economic resilience. Progress will be measured through indicators such as business investment, employment, wages, productivity, and exports, alongside the growth of large UK-based companies in these sectors.

[edit] Previous consultation

Overseen by the Industrial Strategy Advisory Council (ISAC), the 10-year plan also incorporates insights from the "Invest 2035: the UK's modern industrial strategy consultation" (November 2024), addressing regulatory and planning barriers. It represents a sustained, nationwide effort to secure the UK’s economic future in a rapidly changing global landscape, the report responds to the call to take action on issues raised by the eight sectors through the consultation, from addressing the burden of regulation to the speed of planning, noting it will go further in critical areas it has identified.

The previous consultation came under some criticism as reported by Construction Management in December 2024 "CIOB ‘disappointed’ at construction missing from industrial strategy". The institute wrote in its response to the consultation "With housebuilding (as well as broader construction and infrastructure projects) being central to the government’s ambitions, the CIOB [was] disappointed at the lack of explicit focus on the construction sector and wider built environment in Invest 2035: The UK’s Modern Industrial Strategy,”

David Barnes, acting head of policy and public affairs at CIOB, said the methodology used in the document to identify the growth-driving sectors was “flawed”. CIOB is asking the government to improve the quality of data used to avoid making wrong assumptions about the industry’s productivity and innovation. He continued “The current definition of the construction industry, based on standard industrial classification codes, omits key contributions from architects, engineers, quantity surveyors, and manufacturers involved in the sector. This narrow approach fails to capture the full scale of the industry’s impact, which includes essential services such as building materials production, equipment rental and consultancy.” He added: “Data in its current guide often perceives construction to be unproductive and one that does not innovate, routinely ignoring the value added within equipment rental, building materials manufacturing, consultancy and design and component production.”

[edit] Key elements of the strategy in summary

The strategy summary highlights some key elements outlined here in brief:

1. The UK Government will simplify the business environment to restore investor confidence and drive long-term economic growth. Key interventions will remove systemic barriers such as high energy costs, financing gaps, and regulatory delays. This effort is focused on enabling companies to invest confidently in the UK’s economic future.

i) Cut industrial electricity costs, speed up grid connections, invest in clean energy, and deepen EU energy integration.
ii) Secure global trade deals through agile, fair, and pragmatic strategies.
iii) Increase economic security via defence spending, critical supply chain investments, and risk mitigation.
iv) Expand access to finance through the British Business Bank, National Wealth Fund, and UK Export Finance.
v) Invest £86 billion in R&D to boost innovation, particularly in the IS-8 sectors.
vi) Treat data as a strategic economic asset and expand Smart Data initiatives.
vii) Reform skills and employment to build a strong talent pipeline for high-growth sectors.
viii) Cut regulatory burdens by 25%, reduce regulators, and streamline innovation approvals.
ix) Remove planning delays to fast-track transformative infrastructure projects.
x) Create a tax environment that supports high-growth sectors, with a capped 25% Corporate Tax Rate.

2. The Government will support regional growth by enabling investment across city regions and clusters tied to the IS-8 sectors. This includes new funding, strategic site development, and collaboration with devolved governments and local authorities. Infrastructure and institutional support will be used to connect talent, innovation, and investment opportunities.

i) Launch a £600 million Strategic Sites Accelerator and establish AI Growth Zones and Investment Zones.
ii) Support regional innovation and skills through a £500 million Local Innovation Partnerships Fund.
iii) Partner with devolved governments and invest in flagship projects like Acorn CCUS and a new supercomputer.
iv) Back Mayors with 10-year Local Growth Plans and a £500 million Mayoral Recyclable Growth Fund.
v) Improve connectivity across cities and regions through growth corridors, HS2, and other transport upgrades.

3. To transform high-potential sectors, the Government will implement detailed Sector Plans aligned with the IS-8 priorities. These initiatives will unlock innovation, investment, and global leadership in areas like clean energy, tech, and financial services. Tailored support will strengthen each sector’s unique capabilities and scale-up potential.

i) Fund advanced manufacturing with £4.3 billion for innovation and commercialisation.
ii) Grow Creative Industries with £150 million and digital content platforms.
iii) Make the UK a top 3 Life Sciences hub with £600 million for a world-class Health Data Research Service.
iv) Position the UK as a clean energy innovation and manufacturing superpower.
v) Expand the defence industrial base to enhance security and economic growth.
vi) Advance quantum, AI, and digital tech with over £1 billion in targeted support.
vii) Promote AI integration in professional services via the Made Smarter scheme and sector-specific funding.
viii) Strengthen the UK’s global leadership in Financial Services through regulatory reform and capital access.
ix) Enhance resilience of foundational industries and supply chains vital to the IS-8.

4. The Government will build a long-term, strategic partnership with business to deliver the Industrial Strategy. This includes deeper collaboration, institutional reform, and responsive policy delivery. A clear focus on outcomes and agility will ensure continued progress and adaptation over time.

i) Co-invest with industry and use financial levers to de-risk and incentivise private investment.
ii) Use procurement to reinforce domestic supply chains and stimulate innovation.
iii) Improve government-industry interface with streamlined processes and international networks.
iv) Support SMEs with a new Business Growth Service, tackling late payments and easing procurement access.
v) Establish robust institutions, including a permanent Industrial Strategy Council, to drive delivery.
vi) Monitor and evaluate policies rigorously to ensure responsiveness and effectiveness.

[edit] Reactions and responses

[edit] ECA Welcomes Modern Industrial Strategy

ECA welcomes today’s publication of the UK’s Modern Industrial Strategy. The long awaited strategic plan for the next decade, which promises to bring down industrial electricity costs, ensure projects receive timely connections to the Grid, and support Small and Medium businesses (SMEs) by tackling late payments from large firms to SMEs.

Rob Driscoll, ECA’s Director of Legal and Business commented:

“Tackling the culture and practice of late payments within the industry has been a cornerstone of ECA’s advocacy for a number of years. We welcome the Government’s commitment to unlock growth and go further, faster, solving this pernicious issue and look forward to working in partnership with them to end poor payment practices.”

ECA’s Blueprint for Electrification – a roadmap for the UK- calls for improving grid connections and removing barriers to planning to speed up electrification.

“The Industrial Strategy –Clean Energy Industry Sector Plan- outlines a commitment to growing Britain’s electricity network supply chains, so clean power projects can connect to the Grid”, says Jane Dawson, ECA’s Head of External Affairs. “We see this a positive step to speeding up the energy transition, as outlined in the Blueprint for Electrification. ECA Member firms will also welcome the promise to remove planning barriers, an often-cited obstacle to new projects.

Andrew Eldred, ECA’s Deputy CEO commented:

“An electrical career provides high quality jobs and good career progression opportunities. To match the demand of accelerating electrification outlined in the Industrial Strategy, the industry, just in England, needs 12,500 new entrants each year (5,000 more than current levels of apprentice recruitment). Procurement reforms need to prioritise growing the workforce, by mandating apprentice ratios and other industry-endorsed skills targets in contracts.”

While ECA welcomes the reduction in the price of industrial electricity for selected businesses, it continues to call for a review of historical taxation on electricity which would reduce the price of clean energy for everyone.

[edit] RIBA reacts to government’s industrial strategy

The Royal Institute of British Architects (RIBA) has commented on the government’s Industrial Strategy which was announced 23 June.

The long-awaited strategy to increase the UK’s industrial output includes plans for the Professional and Business sector and the Creative Industries sector, with the aim of building a new partnership in which the government provides the long term strategic certainty that enables businesses to invest and grow.

RIBA President, Muyiwa Oki said:

“With world-class buildings designed by UK architects on every continent, our architecture is celebrated globally. It is encouraging that the Industrial Strategy acknowledges this.

Architecture straddles both the professional and business services sector, and the creative industry sector – two key areas prioritised in the Strategy – so has a unique part to play in helping to deliver the government’s growth plans.

Positively, many of our recommendations have been included in the Strategy. From improving the planning system to securing mutual recognition of professional qualifications, change is needed if we are to achieve growth.

However, the decision to defund Level 7 apprenticeships for people over 21, when the government is seeking to increase skills and build a pipeline of homegrown talent, is a backwards step for the profession.

It’s not too late to rethink the decision around Level 7 and we urge the government to undertake a full impact assessment of the consequences of defunding.”

[edit] CIHT reacts to the UK Government’s Modern Industrial Strategy

CIHT welcomes the focus on the 8 strategic sectors, especially those supporting green industries and new technologies.

CIHT has long advocated for integrating transport into broader economic and land-use strategies, as outlined in our response to the strategy consultation (Invest 2035), transport is often overlooked in strategic planning in the UK, despite its fundamental role in running the economy and supporting society.

CIHT highlights that transport needs to be recognised as an essential service and transport infrastructure as a vital capital asset.

As outlined in CIHT’s manifesto,' A transport network fit for all our futures', a robust transport network is essential to achieving the UK industrial strategy’s core objectives. Having effective and accessible highways, transportation networks and services will stimulate the UK economy, increase employment opportunities, improve air quality, deliver on net zero and improve the health of society.

The UK Government’s Modern Industrial Strategy outlines how the government plan to remove planning barriers and accelerate infrastructure delivery.

Key announcements include:

Allowing Gigafactories, laboratories, and data centres to ‘opt in’ to be designated as Nationally Significant Infrastructure Projects.
Reducing the average pre-application period for major infrastructure projects from two years to 12 months.
Launching call for evidence on expansion of permitted development rights.
Streamlining processes for judicial reviews.
Establishing AI growth zones
Implementing 13-week target for decisions made by Ministers on called-in applications.
Implementing a Nature Restoration Fund (subject to the passage of the Planning and Infrastructure Bill).
Providing funding for 300 new planning officers.
Provide long term certainty on UK’s infrastructure needs and delivery through 10-Year Infrastructure Strategy and pipeline of infrastructure projects (to be published summer 2025).

CIHT welcomes the strategy’s focus on skills, having highlighted the engineering skills shortage in our response to the strategy consultation.

CIHT supports measures to address skills shortages in the UK, such as the Skills Mission Fund and creation of Technical Excellence Colleges.

In terms of highways and transportation sector announcements, the strategy largely echoed the 10-Year Infrastructure Strategy, published last week.

Previous announcements from the 10-Year Infrastructure Strategy, include:

£24 billion of capital funding between 2026-27 and 2029-30 to maintain and improve motorways and local roads across the country
Delivering major rail projects such as East-West Rail, the TransPennine Route Upgrade, HS2, and infrastructure in Wales, and taking forward work on Northern Powerhouse Rail, as well as renewal and maintenance of the existing network.
£15.6 billion up to 2031/23 for some of England’s largest city regions to improve transport connectivity via the Transport for City Regions settlements, and £2.3 billion funding for the Local Transport Grant to improve transport connectivity in smaller cities, towns, and rural areas.
£900 million per year to maintain and improve bus services. Illustrative industry analysis suggests that public investment in bus infrastructure and services can generate returns of up to £4.55 for every £1 invested.
£400 million to support the roll-out of charging infrastructure across the country, including to facilitate the deployment of zero emission vans and HGVs.