7th Report - Industrial Strategy

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.

The government accepts the recommendation by clarifying that the Industrial Strategy balances tensions by selecting priority sectors and frontier industries based on a multi-indicator assessment that ensures alignment with growth, net zero, economic security, and regional growth objectives.

The government agrees on the need for clear measures and confirms the Industrial Strategy already includes a robust Monitoring and Evaluation framework overseen by the Industrial Strategy Advisory Council, which will report annually. Six economic indicator metrics have been set, and Sector Plans include varying targets to track progress.

The government accepts the recommendation by articulating a vision for the industrial strategy to help the UK seize opportunities from global societal challenges, specifically mentioning the clean energy transition, tech revolution, AI, and new geopolitics.

The government states the Trade and Industrial Strategies were developed together and will provide direct support to businesses, including through information, commercial diplomacy, tailored export finance, international marketing, new legislation to increase UK Export Finance's portfolio, and a new "Ricardo Fund" to help regulators remove trade barriers.

The government commits to refocusing the overseas network on Industrial Strategy growth sectors, directing officials, prioritising resources, developing promotional campaigns, and empowering Ambassadors and Trade Commissioners to develop new strategic plans for supporting these sectors in major markets.

The government states its Industrial Strategy outlines measures to help firms access funding through Public Financial Institutions, including increasing the British Business Bank's total financial capacity to £25.6 billion and committing an additional £4 billion for investment in IS8 sectors.

The government has launched a new Strategic Investment Opportunities unit within the reformed Office for Investment. This unit will work with Mayoral Strategic Authorities to identify, shape, and deliver strategic investment opportunities, focusing on areas prioritised in the Industrial Strategy.

The government provides clarity on public expenditure, detailing billions in investments allocated to the Industrial Strategy and wider Growth Mission, including £4 billion for the British Business Bank, £4.3 billion for Advanced Manufacturing, and significant funding for transport, housing, nuclear energy, and R&D.

The government has accepted the recommendation, announcing an uplift of the Network Charging Compensation scheme from 60% to 90% from 2026 and a new British Industrial Competitiveness Scheme from 2027 to reduce electricity costs for energy-intensive industries.

The government has committed to expanding the Made Smarter Adoption programme with £99 million from 2026 to support an additional 5,500 manufacturing businesses and will also expand the model to the Professional and Business Services sector.

The government commits to putting the Industrial Strategy Council on a statutory footing via an upcoming IS Bill, with clearly defined duties and functions, and ensuring continued engagement with Mayors.

The government agrees to put the Industrial Strategy Council on a statutory footing through an Industrial Strategy Bill, which will include defined duties, functions, and data access. They also stated the Council has met with Mayors and will continue to engage with them as key stakeholders.

The government accepts the conclusion and outlines specific measures to unlock finance, including increasing the British Business Bank's capacity and committing an additional £4 billion for IS8 investment, expanding the National Wealth Fund's mandate, and strengthening UK Export Finance's offer with an additional £3 billion in lending capacity.

The government details several measures to address high electricity prices, including increasing the Network Charging Compensation scheme uplift from 60% to 90% from 2026, introducing a new British Industrial Competitiveness Scheme from 2027 to reduce electricity costs, and reviewing the existing Energy-Intensive Industries Compensation Scheme.

The government accepts the conclusion by outlining how Skills England will address skills needs through data-driven assessments and co-creation of training, and how the English Devolution White Paper strengthens the role of Mayors and Strategic Authorities in local skills planning to meet employer needs.

The government acknowledges the importance of aligning R&D with industrial strategy, stating it will give UKRI new objectives to ensure clear institutional leadership for innovation, commercialisation, and scale-up, and will ensure the Catapult Network focuses on industrial strategy priorities.