The UK's Industrial Strategy 2025 was published in the summer. We review what the focuses are and what this means for West Midlands businesses moving forward.聽
What is the Industrial Strategy?
As businesses wait for the next quarter estimate of GDP, they face many serious challenges from a barely growing economy to potential tax rises in the government鈥檚 autumn statement. In response to calls from business for stability and certainty earlier in the summer the government launched its industrial strategy, a 10-year plan designed to increase business investment and grow the UK industries of the future.
When was it published?
The UK's Industrial Strategy 2025 was published in June by the Department for Business and Trade and targets eight industrial sectors, aiming to make it 鈥榪uicker and easier for business to invest鈥� and to 鈥榩rovide the certainty and stability needed for long-term investment decisions鈥�.
The industrial sectors covered in the plan are:
- Life Sciences
- Advanced Manufacturing
- Creative Industries
- Defence
- Clean Energy.聽
- Digital and Technologies (incl. artificial intelligence and quantum computing)
- Professional and Business Services
- Financial Services
What is the plan to support your business?
To support these sectors the Government plans to do three key things:
1.聽 Publish specific sector plans alongside the industrial strategy;
2. Focus on places with the greatest potential to support the growth of these sectors, such as city regions and other industrial clusters and strategic sites.
3. Create and drive a more pro-business environment that addresses barriers to growth that these sectors face
The Government has stated that the role of the industrial strategy is to provide 鈥榯argeted policy interventions to drive growth where the UK has, or could develop, a comparative advantage, or to unlock barriers essential for delivering long-term, sustainable, inclusive, and resilient growth鈥�.
What is the general response to the strategy?
While some have praised the government's focus on specific growth sectors and efforts to boost productivity, others have raised concerns that it does not address structural problems with the UK economy, in particular historic under-investment in our industries that continue to impact businesses.
In line with other universities BCU welcomes the recognition of the critical role universities will play in delivering the strategy 鈥� commercialising R&D to generate new innovations and technologies, providing the pipeline of high-level graduates for industry and acting as engines for place-based growth through innovation hubs like .
However, we also recognise that the strategy is very ambitious in its scope, and critics have stated that it does not have sufficient focus on upskilling the existing workforce. It is also reliant on generating sustained economic growth but figures from the Office for National Statistics showed growth in GDP slowed to 0.3% in the three months to the end of June, down from a rate of 0.7% in the first quarter.
How BCU fits in
While the strategy sets a welcome and clear direction, it鈥檚 business that needs to turn that ambition into action. The West Midlands has a key role to play, particularly in advanced manufacturing, creative industries and digital technologies. Local delivery from SMEs to big business will be critical to the success of the strategy and BCU is here to help.
As part of our commitment to support regional business and grow the local economy, we have expanded our Business Services offer to support businesses and organisations of all sizes across private, public and third sectors. We have introduced Contract Research and Consultancy services, enabling clients to benefit from direct collaborations with BCU experts and specialists, as well as adding Short Courses, CPDs and Apprenticeships to support professional learning and skills development in the region.聽
Looking for specific support and research to help your business plan in line with the government's strategic changes? Find out how our聽Consultancy offers could help.
