Response to the UK's Modern Industrial Strategy 2025

London, 23 June 2025: The government unveiled its Modern Industrial Strategy on the 23^rd June 2025, marking a bold 10-year vision to revitalise British industry and drive sustained economic growth. Central to the strategy is a targeted focus on eight high-growth sectors – Advanced Manufacturing, Clean Energy, Creative Industries, Defence, Digital & Technologies (including AI and semiconductors), Financial Services, Life Sciences, and Professional & Business Services – which collectively account for around one-third of the UK economy.

To make the UK more competitive, the plan includes sweeping measures such as cutting energy costs for more than 7,000 energy‑intensive businesses by up to 25% from 2027, simplifying green levies, and fast-tracking grid connections and growth zones.

Backed by significant investment – including £86 billion in R&D, £380 million for creative industries, and £150 million to boost AI adoption in professional services—the strategy aims to foster innovation, bolster regional hubs, and provide businesses with greater certainty and streamlined regulation.

Commenting on the UK’s Industrial Strategy, Mark Smith, Managing Director at Ayming UK, says:

“The Government is right to prioritise high-growth sectors like life sciences, financial services, and advanced manufacturing – areas where the UK already has a competitive edge, and where focussed investment could unlock significant economic growth.

“That said, a targeted approach is only effective when it’s backed by long-term support and commitment. Uncertainty is one of the biggest killers of innovation, and businesses desperately need long-term consistency and stability to plan, invest and scale. Without sustained funding and consistent policy direction, the risk is that today’s promising ideas quickly become tomorrow’s abandoned initiatives, which we’ve seen happen too many times before. While Labour’s commitment to stability in their Business Partnership for Growth was a positive start, policymakers must build cross-party consensus around the strategy to truly break the cycle and instil business confidence.

“The strategy is full of positive ideas and ambition, but we ultimately need to speed up the pace of delivery. This can only be achieved by greater co-ordination, not just across Whitehall departments, but also between national and regional governments. Local leaders are often best placed to understand the specific needs of their economies, and aligning efforts at every level will be key to ensuring the strategy has a real and lasting impact.”

As the government sets the course for a more innovative and competitive UK economy, businesses will be watching closely to see how quickly policy translates into action. With the right follow-through, the Modern Industrial Strategy has the potential to catalyse meaningful growth across key sectors. At Ayming, we remain committed to helping businesses navigate this evolving landscape – unlocking funding, driving innovation, and turning strategic ambition into measurable outcomes.

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