Energy Costs
The strategy is designed to slash electricity bills by up to 25%, or approximately £40/MWh for more than 7,000 energy-intensive manufacturers beginning in 2027. Known as the British Industrial Competitiveness Scheme, this initiative exempts eligible firms from levies including the Renewables Obligation, Feed‑in Tariffs, and Capacity Market charge. In parallel, the British Industry Supercharger scheme will boost network‑charge discounts for the roughly 500 most energy-intensive businesses, from 60% today to 90% by 2026, supporting key industries like steel, chemicals, ceramics, and glass. Funding for these measures will come from energy system reforms and revenues from linked UK–EU carbon pricing, with no increased burden on household bills or the taxpayer.
Enhancing Skills
The UK’s future competitiveness depends on a strong skills and talent pipeline, from early education to workforce training, that aligns with employer needs and evolving technologies like AI. While the country benefits from world-class universities and a well-educated, globally attractive workforce, challenges persist: declining adult education, apprenticeship participation, and employer training investment.
The government plans to reform the skills and employment support system to establish a robust pipeline into key sectors. Measures include investing in technical education through new technical colleges, expanding apprenticeship and short-course provision (particularly in digital manufacturing and AI), and funding upskilling initiatives. There’s also a push to integrate and streamline existing employment support programmes, ensuring they align with employer needs and local growth strategies.
Complementing these educational investments, the strategy seeks to improve access to talent by facilitating both domestic and international recruitment. This involves simplifying visa systems for skilled workers, promoting mutual recognition of overseas qualifications, and enabling rapid onboarding of talent where shortages exist. The aim is to enable employers, especially in high-growth and frontier technology sectors, to swiftly source and retain the personnel crucial to driving innovation and competitiveness.
Connections Reforms
The strategy recognises that grid connect delays are a barrier to electrification and the delivery of Net Zero. The government and Ofgem are implementing a comprehensive overhaul—known as TMO4+ to streamline the grid connection process, aiming to transform the current first‑come‑first‑served approach into a “first‑ready, first‑connected” system.
The UK government is introducing a Connections Accelerator Service by late 2025 to prioritise grid access for high-impact investment projects, particularly those delivering quality jobs and economic value. New legislative powers will allow strategic documents, like this Industrial Strategy, to guide grid capacity allocation. Ofgem is reviewing the entire connections process to improve speed, service, and transparency. Alongside process reforms, efforts are also focused on accelerating the construction of new grid infrastructure, with £60 billion proposed for investment in the 2026–2031 transmission upgrade cycle.
Link to the Industrial Strategy.