- Electricity costs for thousands of businesses to be slashed by up to 25%
- UK Government to establish a centre for doctoral training in semiconductors, led by Swansea University
- Welsh businesses to benefit from innovation funding, access to finance, faster grid connections and better-equipped sites for expansion.
Wales is set for increased economic growth, billions in investment and tens of thousands of new jobs supported over the next decade as a result of the UK Government’s modern Industrial Strategy, which is published today (Monday 23 June).
The Strategy contains measures to forge a new relationship between business and government, making Wales and the UK the best place to start and scale up a business.
It will unlock growth across Wales, targeting areas of strength from the country’s strengths in aerospace in North Wales to the world’s first compound semiconductor cluster in South Wales.
More than 7,000 UK businesses are set to see their electricity bills slashed by up to 25%. British manufacturers currently pay some of the highest electricity prices in the developed world— in some cases, double the European average, while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid.
For too long these challenges have held back growth and made it harder for firms to compete globally. Today’s announcement marks a decisive shift — with government stepping in to support industry and unlock the UK’s economic potential.
From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals.
These firms, which support over 300,000 skilled jobs across the UK will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market — helping level the playing field and make them more internationally competitive. Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly.
The UK Government is also increasing support for the most energy-intensive firms — like steel, chemicals, and glass — by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. These businesses currently get a 60% discount on those charges, but from 2026, that will increase to 90%. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future.
These reforms complement the government’s long-term mission for clean power, which is the only way to bring down bills for good by ending the UK’s dependency on volatile fossil fuel markets.
The Industrial Strategy is a 10-year plan to promote business investment and growth and make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create 1.1 million good, well-paid jobs in thriving industries – delivering on this government’s Plan for Change.
Wales is already punching above its weight in many of the growth driving sectors set out in the Industrial Strategy.
The key measures for Wales are
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More than £4bn for the advanced manufacturing sector in the UK over the next 5 years. Wales has a leading advanced manufacturing sector with companies such as Airbus based in Broughton in north Wales.
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UK Government to establish a centre for doctoral training in semiconductors, led by Swansea University, building on the world-leading cluster based in south Wales.
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A Defence Growth Deal cluster to build on Wales’s major strengths. The top five Ministry of Defence suppliers all have a footprint in Wales.
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A new British Business Bank champion for the Cardiff Capital Region to connect investors with businesses and kickstart growth.
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£30m for a Local Innovation Partnerships Fund in Wales to work with the Welsh Government and Innovate UK to grow innovation.
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The National Wealth Fund working with the Development Bank of Wales to identify and secure financing for investment projects in Wales.
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Support for the UK’s city regions and clusters by increasing the supply of investible sites through a new £600m Strategic Sites Accelerator, enhanced regional support from the Office for Investment, National Wealth Fund, and British Business Bank, and more.
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Strengthened support from the Office for Investment to help identify, shape and deliver strategic investment opportunities across the UK.
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.
Secretary of State for Wales Jo Stevens said
Wales has huge potential and our government’s Industrial Strategy will harness the strengths of our businesses and workforce to drive growth and create jobs.
The strategy will support key sectors like aerospace and compound semiconductors while developing industries of the future like floating offshore wind where Wales is well-placed to be a world leader.
Our modern Industrial Strategy is built to last and make Wales one of the best places to invest and do business. Working alongside Welsh Government we will boost growth, raise wages and create wealth across our country.”
Business and Trade Secretary Jonathan Reynolds said
We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people.
Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people’s pockets and pays for our NHS, schools and military.
Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial energy prices globally competitive.
Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened, and now we’re taking the bold action needed. Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver.”
Sarah Williams-Gardener, Chair of Fintech Wales, said
We are delighted to see financial services recognised as a key sector in this Industrial Strategy. We look forward to working closely with the Government to help unlock the sector’s full potential.
The emphasis on AI and the compute power required to support its development is particularly welcome, as we begin to see generative AI driving innovation across financial services—empowering both providers and customers through the next generation of digital banking platforms.
Frank Holmes, Founding Partner of Gambit Corporate Finance and Chair of the Cardiff Capital Region Investment Board, said
Today’s announcements mark a timely and important shift towards a connected, strategic approach to economic growth. The renewed focus on industrial strategy and SME finance speaks directly to the opportunities we are unlocking in the Cardiff Capital Region. We have backed innovative and scalable businesses like Whisper TV, showcasing how tailored regional finance can drive job creation, innovation and global reach.
The UK’s commitment to extending SME access to finance aligns perfectly with the ecosystem we are building in CCR as a proven delivery partner and a model for regional economic development.”
Louise Harris, CEO of Tramshed Tech in Cardiff, said
The launch of the UK Government’s Industrial Strategy is a pivotal moment for our tech and innovation ecosystem. By aligning local strengths with national ambition, this strategy provides a powerful platform for Welsh businesses to grow, attract investment and lead in emerging sectors such as technology, advanced manufacturing, and creative industries.
This strategy recognises that innovation isn’t just about technology in isolation – it’s about creating sustainable, high-quality jobs while tackling real-world challenges. This approach will create the perfect environment for startups and scale-ups to thrive, knowing they have both the infrastructure, skills and strategic support to take their innovations from Wales to the world.”
The Industrial Strategy is a 10-year plan to promote business investment and growth and make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create good, well-paid jobs in thriving industries – delivering on this government’s Plan for Change.
Investment from private companies is essential to creating new jobs, growing the economy and securing public services. That is why the Strategy will also introduce measures to make it quicker, easier and more profitable for businesses to invest in the UK, with the aim of significantly increasing businesses investment and in key growth sectors by 2035 and helping to create 1.1 million well paid jobs across all corners of the UK.
It will realise Wales’ economic potential and raise wages and living standards to a level that the people of Wales deserve.
The UK Government’s plans address the main barriers to growth, making it easier and quicker to do business and invest in Wales.
The Strategy’s bold plan of action includes
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Slashing electricity costs by 20-25% to level the playing field for energy-hungry industries like chemicals and key growth sectors like automotive.
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Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank capacity to £25.6 billion, crowding in tens of billions of pounds more in private capital.
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Reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators.
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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.
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Attracting elite global talent to our key sectors, via visa and migrations reforms and a new the Global Talent Taskforce.
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Revolutionising public procurement and reducing barriers for new entrants and SMEs to bolster domestic competitiveness.
Five sector plans have also been published today
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Advanced Manufacturing – Backing our Advanced Manufacturing sector with up to £4.3 billion in funding, including up to £2.8 billion in R&D over the next five years, with the aim of anchoring supply chains in the UK – from increasing vehicle production to 1.35 million, to leading the next generation of technologies for zero emission flight.
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Clean Energy Industries – Doubling investment in Clean Energy Industries by 2035, with Great British Energy helping to build the clean power revolution in Britain with a further £700 million in clean energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to £1 billion.
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Creative Industries – Maximizing the value of our Creative Industries through a £380 million boost for film and TV, video games, advertising and marketing, music and visual and performing arts will improve access to finance for scale-ups and increase R&D, skills and exports.
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Digital and Technologies – Making the UK the European leader for creating and scaling Digital and Technology businesses, with more than £2 billion to drive the AI Action Plan, including a new Sovereign AI Programme and targeting R&D investment at frontier technologies such as cyber security in Northern Ireland, semiconductors in Wales and quantum technologies in Scotland.
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Professional and Business Services – Ensuring our Professional and Business Services becomes the world’s most trusted adviser to global industry, revolutionising the sector across the world through adoption of UK-grown AI and working to secure mutual recognition of professional qualifications agreements overseas.
