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UK’s Industrial Strategy: Key Takeaways

Published on: 26th June 2025

The UK’s Modern Industrial Strategy: What You Need to Know

In October, the government launched Invest 2035, a green paper seeking industry feedback on key sectors for long-term industrial growth. After months of review, including expert insights and Business and Trade Select Committee sessions, the UK’s Modern Industrial Strategy was officially published on 23rd June. This strategy outlines the government’s plan to drive investment and growth across vital sectors, including aerospace, advanced manufacturing, digital technologies, and defence.

This is a ten-year strategy from HM Government which will enable businesses to create wealth through  partnerships and enterprise support. To note, the strategy is the 11th in a 13-year period drawn up by various governments over time.

While the strategy was limited in its direct mentions of the South West, the Defence Growth Plan or Defence Industrial Strategy is pending. There are reasons to be optimistic for the region as WEAF continues with its focus on promoting the region as not only a suitable place to do business but to buy from.

WEAF says:

Colin Turner, CEO of WEAF, commented: “While the latest Industrial Strategy may not explicitly detail every regional nuance, we welcome its overarching commitment to the long-term future of advanced manufacturing. Our immediate focus is on dissecting the ‘devil in the detail,’ particularly the proposed research and development investment. We need to see clear, tangible pathways that translate this investment into real-world, market-ready products, ensuring the UK remains at the forefront of innovation and global competitiveness for years to come.”

Industry Points of View:

In a HM Government press release, John Harrison, General Counsel and Head of Public Affairs, Airbus, said: “Airbus welcomes the UK’s modern Industrial Strategy. Having worked closely with the Government to help shape this plan, we are delighted to see it deliver a long-term vision, built on a genuine partnership with industry. The firm long-term commitment to the full innovation lifecycle, from R&D in the Aerospace Technology Institute to a focus on commercialisation and supply chain resilience, provides the confidence and stability needed to fuel innovation and anchor high-value manufacturing in the UK for decades to come. The significant new investment in skills is also critical, creating a strong pipeline of engineering and digital talent, which will be the foundation for developing the sustainable technologies of the future, from hydrogen-powered aircraft to next-generation space systems. We stand ready to help turn this ambitious strategy into a reality for British industry.”

Kevin Craven, ADS CEO, stated: “Our sectors are future-leaning industries, rich in engineering excellence, innovation in advanced manufacturing and world-leading digital services. Found in every corner of the country, they directly employ more than 440,000 people each year. Productivity in our sectors – which already outpaces the UK average – will continue to thrive with the appropriate government backing. We look forward to working closely with the Government to make its vision of a new strategic partnership with industry to drive growth a reality. The time is long overdue for a more muscular approach to securing the UK’s advantage and we welcome this moment.”

Key areas of interest:

The establishment of a Supply Chain Centre will bolster the UK’s economic resilience by strategically assessing and securing critical supply chains. Its comprehensive analysis will involve:

  • Reviewing Inputs: Assessing necessary raw materials, components, and services.
  • Analysing Future Demand: Forecasting how global and domestic trends will affect input demand.
  • Identifying Actions: Pinpointing proactive measures to mitigate vulnerabilities, such as:
    • Domestic Capability Building: Investing in and expanding UK production.
    • Diversification: Broadening supplier bases and geographic sources.
    • Strategic International Partnerships: Creating stronger alliances for resource and expertise access.

Place was a key area of focus for the Invest 2035 green paper. The strategy emphasises supporting existing clusters of expertise across the UK, explicitly naming the South West as a key area for development.

WEAF welcomes the British Business Bank as a mechanism for organic growth.

In total there are eight growth sectors, including: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, Professional and Business Services.

WEAF is pleased that the Industrial Strategy recognises the following areas that are relevant to our membership:

Advanced manufacturing – Sarah Jones MP Minister of State for Industry outlined in the plan that the UK is set to be the world’s premier destination for Advanced Manufacturing by 2035. This ambitious goal will be achieved by streamlining the business environment, removing investment and innovation barriers, and supporting SMEs in adopting innovative technologies.

The strategy prioritises six “frontier industries” critical to shaping the future of UK manufacturing:

  • Automotive: Focusing on next-generation Zero Emission and Connected Automated Vehicles.
  • Batteries: Powering the net-zero transition with landmark investments like Agratas’ multi-billion-pound gigafactory in Bridgwater.
  • Aerospace: Enhanced by a long-term commitment to ATI, which supports the development of advanced technology and propulsion systems.
  • Space: Driven by growing economic, national security, defence, and geopolitical interests.
  • Advanced Materials: Positioning the UK at the leading edge of development of materials and processes.
  • AgriTech: Developing revolutionary approaches to agricultural productivity and sustainable food production for both domestic and global supply chains.

Ways the government is trying to tackle this already is through slashing energy prices for businesses, welcomed by Clive Higgins, CEO and Chair of Leonardo UK, on Radio 4’s Today programme on 23 June.

Digital and technologies – Firstly the South West is seen as a centre of innovation particularly around cyber security. The plan for cyber is linked to exploiting technologies that will encourage investment into the sector. This will be achieved by enhancing infrastructure, accessibility to finance, and working with academia and industry and through international partnerships with Japan, India, and the Republic of South Korea.

Defence is going to be explored through a separate defence industrial strategy paper. WEAF will update its members on this area shortly.

What’s next?

As Colin Turner, CEO of WEAF, highlights, the focus is now on translating future R&D investment into tangible, market-ready systems and services, ensuring the UK and the South West remain at the forefront of innovation and global competitiveness.

The collective voice from industry, including the major primes within the region and ADS, underscores a long-term vision built on partnership and a robust approach to delivering the UK’s advantage, ensuring confidence and stability for decades of high-value manufacturing not only in the UK but in the South West.

 

Sources:

 

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