UK govt names core sectors for industrial strategy
The UK Government has opened a consultation to inform the development of the new industrial strategy.
This public consultation will inform the development of the new industrial strategy: the government’s proposed plan to ease the investor journey and create long-term, inclusive, secure and sustainable growth. The final industrial strategy will be published in spring 2025, alongside the multi-year Spending Review.
The Industrial Strategy will focus on the sectors which offer the highest growth opportunity for the economy and business. The UK Government has identified eight growth-driving sectors: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services.
In the next stage of development of the Industrial Strategy, the Government ‘will prioritise subsectors within these broad sectors that meet our objectives and where there is evidence that policy can address barriers to growth.’
The Green Paper published by the Department for Business and Trade Partnership with devolved governments will make this a UK wide effort and support the considerable sectoral strengths of Scotland, Wales, and Northern Ireland.
The Government is developing a 10-year infrastructure strategy, which will be aligned with the Industrial Strategy.
In a speech to some of the world’s biggest businesses and investors, Chancellor Rachel Reeves revealed on October 14th that restoring fiscal stability will be at the centre of her first Budget on 30 October. She made the case that it is the only way to ensure government and business can invest with confidence.
The Chancellor announced that the UK Infrastructure Bank will operate as the National Wealth Fund (NWF), with its headquarters in Leeds. The National Wealth Fund is to catalyse tens of billions of pounds of private investment into the UK’s clean energy and growth industries, including green hydrogen, carbon capture and gigafactories.
This will include the ability to trial new blended finance solutions with government departments that take on additional risk to facilitate higher impact in individual deals and performance guarantees. The National Wealth Fund will have a total of £27.8 billion and will work with key industry partners, including mayors, to support delivery of their investment plans.
The Government will also bring forward legislation to give the NWF a broader mandate than just infrastructure, ensuring it is a permanent part of government’s investment offer.
