A new green paper aims to boost growth through a focus on high-performing sectors, regional expertise and opportunity and a supportive policy environment.

In a bold move to reshape the UK's economic and industrial landscape, the Government has released its highly anticipated 10-year Industrial Strategy green paper for consultation.

Invest 2035: the UK’s modern industrial strategy is an important document that sets out how the Government intends to prioritise its efforts to deliver on its commitment of creating a stable and growing economy that is attractive to investment.

The Industrial Strategy is built on three pillars:

1. Focus on eight high-potential industrial sectors

2. Place-based approach leveraging regional expertise and opportunities

3. A supportive policy framework to drive growth

We’ve explored each of these areas to understand what they mean for the UK's economic future. It provides signals for business planning from a sector, national and regional perspective.

1. High-potential industrial sectors

The strategy identifies eight sectors poised for significant growth and innovation:

• Advanced manufacturing: Boosting high-tech production to lead global innovation and productivity. For example, this could involve investing in robotics and AI-driven manufacturing processes.

• Clean energy industries: Powering the future with sustainable solutions and green job creation. This sector could see expansion in offshore wind farms and development of new energy storage technologies.

• Creative industries: Nurturing the UK's cultural and artistic strengths for global impact and economic growth. This might include further support for the UK's thriving film and television production industry.

• Defence: Enhancing national security while driving technological advancements and skilled employment. This could involve developing cutting-edge cybersecurity technologies.

• Digital and technologies: Spearheading the digital revolution to keep the UK at the forefront of technological innovation. We might see increased investment in areas such as quantum computing and 5G infrastructure.

• Financial services: Leveraging the UK's world-class expertise to maintain leadership in global finance. This could include fostering the growth of fintech startups and blockchain technologies.

• Life sciences: Pioneering medical breakthroughs to improve health outcomes and boost the economy. For instance, further development of mRNA vaccine technologies and personalised medicine.

• Professional and business services: Exporting UK expertise to drive domestic growth and international competitiveness. This might involve expanding consulting and legal services globally. 

2. A place-based approach to industrial growth

Unlike the previous Government’s "levelling up" initiatives, this strategy focuses on existing world-leading clusters and unlocking the untapped potential of major city regions outside London and the South East.

Key regional clusters include:

• Cambridge and Liverpool - Life sciences

• Edinburgh, Leeds and London - Financial services

• Broughton, Newport, Greater Manchester, West Midlands, North East and South Yorkshire - Advanced manufacturing

• Bristol and Northern Ireland - Digital industries

• Aberdeen and Derby - Clean energy

The strategy cites research showing that the eight largest cities outside London have a combined productivity gap of £47 billion per year compared to their potential. To address this, the Government plans to work with Mayoral Combined Authorities to develop 10-year Local Growth Plans. 

There's also consideration of creating new towns where housing demand constrains growth.

3. Policy framework to support delivery

Six key policy pillars will underpin the strategy's delivery:

1. Skills and workforce development - Addressing skills mismatches and boosting higher-paid employment in growth sectors.

2. Innovation and R&D - Strengthening the UK's research base and improving commercialisation of innovation.

3. Energy and infrastructure -Ensuring reliable, affordable energy and addressing infrastructure challenges.

4. Regulatory environment - Creating a framework that supports growth while protecting consumers and businesses.

5. Investment - Mobilising capital and improving access to finance, particularly for SMEs.

6. International partnerships and trade - Fostering global cooperation and expanding trade opportunities.

Stakeholder engagement: Your voice matters

The Government is actively seeking input from a wide range of stakeholders on various aspects of the proposed strategy. The green paper includes specific questions on topics ranging from identifying key subsectors to addressing barriers to growth.

We strongly encourage you to make your views known through the channels suggested in the document. This includes MPs, unions, trade organisations and regional, local, and devolved Government partners.

You can also provide feedback via an online survey. The deadline for submissions is 24 November.

It’s a unique opportunity to shape the UK economy and to identify how you can align your own business to the growth pillars of the future.

Timeline and next steps

The final strategy and sector plans are set to be published in Spring 2025, aligning with a multi-year Spending Review. To ensure long-term accountability and effectiveness, the Government plans to establish a statutory Industrial Strategy Council for oversight, advice, and evaluation.