Source · Select Committees · Business and Trade Committee
Recommendation 1
1
Accepted
Build an active partnership between government, business, and unions for industrial strategy delivery
Recommendation
We welcome the Government’s proposals to bring forward a modern, 10-year industrial strategy that provides businesses and investors with certainty, stability and a solid foundation upon which to invest and grow. A more active partnership between Government, business, trade unions and local leaders is needed to address the stubborn economic challenges of the past and help business navigate the seminal challenges of the future. The Government must remain agile and responsive to what is a dynamic global environment. However, the price of further inconsistency is high. Delivering this strategy successfully will be a whole-of-government endeavour and we look forward to playing our part by holding the Government to account for its performance. (Conclusion, Paragraph 17) Growth Mission
Government Response Summary
The government states it published the modern Industrial Strategy in June 2025, outlining a 10-year plan to back eight high-potential sectors and frontier industries, with specific targets for business investment and growth across various sectors.
Government Response
Accepted
HM Government
Accepted
The Government published the modern Industrial Strategy in June 2025. The Strategy defined the Government’s 10-year plan to realise the UK’s potential and to back its strengths. It sets out the Government’s ambition to create a connected, high-skilled, economically growing country, where opportunity, skills and wealth abound are spread fairly and where every person and every business has the chance to flourish. The overarching vision for the Strategy is to focus on the critical need to increase business investment, capturing a greater share of internationally mobile capital, spurring domestic businesses to scale up, and supporting small and medium-sized businesses reliant on supply-chains. This is about positive choices: backing eight sectors with the highest potential, and the frontier industries at their leading edge to support the next generation of industry leaders. This will be delivered by focusing on eight growth-driving sectors and the frontier industries within them. For each sector, the Government has set out a clear, measurable ambition: • The UK’s Advanced Manufacturing sector will achieve a near doubling of business investment to £39 billion per year. • The UK will be Europe’s leading Defence exporter, will have closed the gap for venture capital investment into Defence with the US by half, and will radically reduce the time to contract across all segments of Defence procurements. • Business investment in frontier Clean Energy Industries will at least double to over £30 billion. • By 2035, our vision is for the UK to be one of the top three places in the world to create, invest in and scale-up a fast-growing technology business. • The Creative Industries sector will significantly increase business investment to £31 billion. • The UK will be the location of choice for Financial Services firms to invest, grow, and sell their services to the world with the sector increasing its contribution of exports to UK GVA. • The UK will, by 2030, be the leading Life Sciences economy in Europe; and by 2035, the third most important Life Sciences economy globally, after the US and China. • The Professional and Business Services sector will double business investment to £65 billion.