Labour’s 10-Year Industrial Strategy ...
Labour’s 10-Year Industrial Strategy
In June, and alongside its 10-year Clean Energy Strategy, the Government set out its 10-year industrial strategy - a long-term framework focused on unlocking growth across eight sectors: advanced manufacturing, clean energy, defence, digital, creative industries, life sciences, financial and professional services.
It marks a return to industrial policy with structure: a £39bn annual output target for advanced manufacturing, significant public capital through the British Business Bank and National Wealth Fund, and targeted support for strategic infrastructure all signal intent.
For UK industry - particularly energy-intensive operators - the commitments around energy cost relief are long overdue.
Reducing Energy Cost ExposureThe British Industrial Competitiveness Scheme (BICS) aims to reduce power costs for over 7,000 sites from 2027. Grid levies will be removed entirely for heavy users, and discounts will increase to up to 90%.
For sectors operating at scale such as steel, chemicals, advanced materials, and EfW, this could materially shift long-term viability as UK manufacturers have been exposed to persistently high electricity costs compared to European peers, limiting reinvestment and undermining competitiveness.
Finance and Focus for Industrial Decarbonisation£7.3bn has been allocated to strategic industrial assets, including clean steel, hydrogen, carbon capture, and ports; a further £4bn is also earmarked for industrial scale-ups.
This is critical. We see projects delayed not because the technology isn’t ready, but because risk remains difficult to price. A consistent pipeline of investable projects, backed by policy, is essential to driving deployment.
Joined-up Delivery Still to ProveWhat’s more, this ambitious strategy includes plans to consolidate existing enterprise zones and freeports into new “Industrial Strategy Zones”, giving local authorities a greater role in attracting and enabling investment.
If structured well, this could support more coherent delivery, aligning planning, grid infrastructure, skills, and land use.
But without clear governance, it risks adding another layer of complexity.
Execution Risks and Structural ChallengesWhile Labour’s industrial strategy sets out a clear long-term vision, several delivery risks could undermine its impact.
Among them is the potential lag between policy announcement and practical implementation. Capital-intensive infrastructure projects rely on early certainty - if funding access, planning reform, or legislative mechanisms move too slowly, investor confidence may weaken.
Similarly, while the proposed energy cost relief is welcome, UK electricity prices may still remain uncompetitive compared to international peers, limiting the strategy’s ability to anchor heavy industry at home.
There are also concerns around policy complexity and system capacity. Multiple funding bodies - including the National Wealth Fund, UKIB, and Great British Energy - could create overlap and administrative friction, particularly for smaller firms.
Local planning departments and grid infrastructure, both already under strain, may struggle to keep pace with the scale of intended deployment.
Finally, the absence of detailed metrics, delivery schedules, and independent oversight raises questions about long-term accountability. If execution falters, the UK risks missing a rare opportunity to rebuild industrial capability with clarity and purpose.
Delivery Will Define Its LegacyThe return of long-term industrial strategy is a positive development, providing clearer direction for sectors that have long operated in policy uncertainty.
For UK industry, the commitments around energy cost relief, strategic investment, and manufacturing scale-up are welcome signals.
But the challenge now lies in execution.
Without clear delivery mechanisms, joined-up governance, and rapid implementation, momentum may falter. Energy cost reductions must go far enough to restore competitiveness. Funding must be accessible, not bureaucratic. And local capacity - in planning, grid, and skills - must be strengthened if deployment is to match ambition.
This is a rare opportunity to rebuild industrial capability around net zero, resilience, and regional growth. Whether it delivers will depend not just on strategy, but on sustained, system-wide follow-through.
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