New UK industrial strategy promises major boost for Welsh economy, jobs and innovation
New UK industrial strategy promises major boost for Welsh economy, jobs and innovation
Wales is set to benefit from a new 10-year UK Industrial Strategy unveiled this week, which aims to drive economic growth, unlock billions in private investment, and create tens of thousands of skilled jobs across key sectors including manufacturing, energy, technology, and financial services.
Announced on Monday, the strategy outlines a wide-ranging package of support measures designed to make the UK the most competitive country in the G7 for business investment and expansion. For Wales, it signals renewed investment in advanced manufacturing, semiconductors, clean energy, and fintech, alongside major changes to industrial electricity costs and innovation funding.
Key measures for Wales
The UK Government’s plan includes more than £4 billion in funding for advanced manufacturing over the next five years. In north Wales, global firms like Airbus, based in Broughton, stand to benefit from increased R&D support and supply chain strengthening.
South Wales’ globally recognised compound semiconductor cluster will also see a major boost, with Swansea University set to lead a new centre for doctoral training in semiconductors. A Defence Growth Deal cluster is also planned to build on Wales’s strong defence sector presence.
Cardiff will gain a new British Business Bank “champion” to help connect investors with Welsh businesses and unlock regional growth. This is in addition to £30 million earmarked for a Local Innovation Partnerships Fund, designed to collaborate with the Welsh Government and Innovate UK to boost local R&D efforts.
Strategic investment projects in Wales will also benefit from the backing of the National Wealth Fund in partnership with the Development Bank of Wales.
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Cutting industrial energy costs
A cornerstone of the strategy is a commitment to reduce electricity costs for more than 7,000 energy-intensive businesses by up to 25%. From 2027, the new British Industrial Competitiveness Scheme will cut prices by as much as £40 per megawatt hour, while manufacturing firms will be exempt from levies such as the Renewables Obligation and Feed-in Tariffs.
Support for highly energy-intensive industries, including steel and chemicals, will increase through the British Industry Supercharger scheme. From 2026, these businesses will receive a 90% discount on network charges, up from the current 60%, helping them remain competitive and protect jobs.
Backing growth and innovation
The strategy also sets out national ambitions to increase R&D investment to £22.6 billion annually by 2030. Wales will share in over £2 billion for AI development and £2.8 billion for advanced manufacturing research. Regulatory reforms are also expected to fast-track progress in high-growth sectors such as biotechnology, autonomous vehicles, and digital technologies.
A new £600 million Strategic Sites Accelerator will support investible sites across UK regions, including Wales, alongside expanded support from the Office for Investment.
Wales’s strengths in clean energy, particularly floating offshore wind, are also highlighted as key areas for long-term growth.
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Sectoral plans to drive UK-wide transformation
Five targeted sector plans have been released alongside the Industrial Strategy:
- Advanced Manufacturing: Up to £4.3 billion in investment to strengthen supply chains, expand zero-emissions vehicle production, and support aerospace technologies.
- Clean Energy Industries: Doubling clean energy investment by 2035 with a £1 billion Great British Energy Supply Chain fund.
- Creative Industries: A £380 million package for film, TV, gaming, music, and the performing arts to enhance exports and skills development.
- Digital and Technology: More than £2 billion to drive AI and secure the UK’s leadership in semiconductors, cyber, and quantum technologies.
- Professional and Business Services: Global recognition of UK standards and accelerating AI adoption across the sector.
Wales welcomes announcement
Prime Minister Keir Starmer described the Industrial Strategy as a “turning point” for the UK economy, promising to “power Britain’s future” by aligning government with business and industry to boost long-term growth.
Secretary of State for Wales Jo Stevens said the strategy would “harness the strengths of our businesses and workforce to drive growth and create jobs,” adding that sectors such as aerospace and semiconductors will continue to be strategic priorities.
She said: “Wales has huge potential and our government’s Industrial Strategy will harness the strengths of our businesses and workforce to drive growth and create jobs.
“The strategy will support key sectors like aerospace and compound semiconductors while developing industries of the future like floating offshore wind where Wales is well-placed to be a world leader.
“Our modern Industrial Strategy is built to last and make Wales one of the best places to invest and do business. Working alongside Welsh Government we will boost growth, raise wages and create wealth across our country.”
Business leaders across Wales have also welcomed the strategy. Sarah Williams-Gardener, Chair of Fintech Wales, said the recognition of financial services and AI infrastructure as “particularly welcome,” while Tramshed Tech CEO Louise Harris called the launch “a pivotal moment” for Wales’s tech and innovation ecosystem.
Frank Holmes, Chair of the Cardiff Capital Region Investment Board, added that the renewed focus on SME finance “aligns perfectly” with the investment ecosystem being developed in the region.
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Long-term impact for Welsh economy
The Industrial Strategy aims to create 1.1 million high-quality jobs across the UK by 2035, underpinned by a significant increase in business investment and enhanced support for regional economies. For Wales, the ambition is clear: unlock its full economic potential, raise living standards, and establish the country as a leading destination for innovation and growth.
