The UK government has set out a 10-year plan to significantly boost business investment in eight key sectors, a strategy that includes a new capital commitment from the British Business Bank.
The strategy, published on Monday (23 June), contains a range of policy measures ranging from lowering energy prices to speeding up drug approvals.
One of the most important messages in the strategy is that the government will focus on accelerating growth for the fastest-growing third of the economy, said the British High Commission Dhaka on Tuesday.
The UK government in its plan has identified eight sectors – the IS-8 – that it judges have the highest potential for economic growth.
They are: advanced manufacturing, the creative industries, life sciences, clean energy, defence, digital and technology businesses (including artificial intelligence and quantum computing), financial services such as banking and insurance, and professional services such as accounting and the legal profession.
Those sectors will receive the bulk of government industrial support, whether that be through cheaper energy prices, trade support or skills training.
Prime Minister Keir Starmer said the modern industrial strategy “marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past”.
It also said the strategy would unlock finance for innovative businesses, especially for SMEs, create good skilled jobs and make Britain the best place to do business.
The plan also includes targeted support that have the greatest potential to grow, while introducing reforms that will make it easier for all businesses to get ahead.
The Strategy’s bold plan of action includes:
Slash electricity costs by up to 25% from 2027 for electricity-intensive manufacturers in growth sectors and foundational industries in their supply chain, bringing costs more closely in line with other major economies in Europe.
Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank financial capacity to £25.6 billion, crowding in tens of billions of pounds more in private capital. The includes an additional £4bn for Industrial Strategy Sectors, crowding in billions more in private capital. By investing largely through venture funds, the BBB will back the UK’s most high-growth potential companies.
Reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators.
Boosting R&D spending to £22.6bn per year by 2029-30 to drive innovation across the IS-8, with more than £2bn for AI over the Spending Review, and £2.8bn for advanced manufacturing over the next ten years. This will leverage in billions more from private investors. Regulatory changes will further clear the path for fast-growing industries and innovative products such as biotechnology, AI, and autonomous vehicles.
Attracting elite global talent to our key sectors, via visa and migration reforms and the new Global Talent Taskforce. The Taskforce and a £54m Global Talent Fund will support top talent to relocate to the UK.
Deepening economic and industrial collaboration with our partners, building on our Industrial Strategy Partnership with Japan and recent deals with the US, India, and the EU.
The plan focuses on 8 sectors where the UK is already strong and there’s potential for faster growth: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Each growth sector has a bespoke 10-year plan that will attract investment, enable growth and create high-quality, well-paid jobs.
Prime Minister Keir Starmer said: “This Industrial Strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.
“In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people’s pockets as part of the plan for change.
“This is how we power Britain’s future - by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear - Britain is back and open for business.”
British High Commissioner to Bangladesh Sarah Cooke said: “The UK’s modern Industrial Strategy is our ten-year plan to strengthen infrastructure, reduce costs for businesses and simplify regulation.
“The Strategy will help strengthen the already strong economic ties between UK and Bangladesh.”
Source: Daily Sun
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