Priority for United Kingdom's industrial strategy shifts towards innovation in manufacturing and life sciences sectors

The UK government has announced an ambitious industrial strategy aimed at securing the country's first trillion-dollar technology business and making Britain the best place to invest in globally by 2035.

At the heart of this strategy are eight sectors (IS-8) with the highest potential for economic growth. Artificial intelligence, engineering biology, quantum technologies, semiconductors, and life sciences have been identified as having the greatest growth potential. In a bid to support these industries, the government plans to slash trial approval times to under 150 days and streamline regulation and market access.

The strategy also supports foundational industries and their supply chains. This includes a steel strategy, scheduled for summer 2025, and an enhancement of the Critical Minerals Intelligence Centre. Notably, the chemical industry has been recognised as 'at the core of Advanced Manufacturing', a move that has been welcomed by the Chemical Industries Association.

The government's commitment to strengthen and retain the British Supercharger package for energy-intensive businesses, and the inclusion of chemical businesses under the British Industrial Competitiveness Scheme, has been seen as a positive signal by the association. From 2026, energy-intensive industries will also receive a 90% discount for network charges, a move expected to reduce energy costs by up to £40 per megawatt hour, a reduction of around 25%.

In the clean energy sector, the UK government aims to double investment in frontier clean energy industries to over £30 billion per year by 2035. Companies in these sectors will be exempt from paying for the renewables obligation, feed-in tariffs, and the capacity market.

The strategy also includes a new Supply Chain Centre, which will review inputs, consider the impact of future trends on demand, and determine what action may be required. Moreover, the government is launching a new industrial competitiveness scheme in 2027.

However, not everyone is convinced. An expert in science and technology policy at the University of Manchester has expressed concern that the strategy neglects the reality that most technological development is happening elsewhere in the world.

Despite this, the strategy places a strong emphasis on advancing basic curiosity-driven research as a goal in its own right. The British government is also supporting innovation and growth potential in the chemical industry through research institutions such as Cardiff University, which hosts funded PhD positions focused on sustainable and green chemistry with industrial partnerships, supported by EPSRC and Dstl.

The Royal Society of Chemistry has cautiously welcomed the strategy for recognising the importance of research, the need to tackle barriers to investment and scale-up for technology firms, and the role of higher education and skills. The strategy increases R&D funding, as announced at the 2025 spending review.

In conclusion, the UK government's industrial strategy is a bold and ambitious plan aimed at securing the country's place as a global leader in technology and clean energy industries. While there are concerns about the strategy's ability to compete on a global scale, the focus on research, innovation, and investment in key sectors is a positive step towards achieving the government's goals.

Priority for United Kingdom's industrial strategy shifts towards innovation in manufacturing and life sciences sectors