Britain’s modern Industrial Strategy has moved firmly from publication to delivery. It was launched in June 2025 as a ten-year plan to raise business investment across eight high-growth sectors. Since then, detailed sector plans, quarterly progress reports and a first annual review, published in July 2026, have followed. The annual review gives investors and boards a clearer picture of where capital is flowing.

Government data shows more than £380 billion of private sector investment attracted into the priority sectors during the first year, supporting over 155,000 jobs across the country. Three new trade agreements have been signed, £9 billion has been allocated to research and the commercialisation of new technologies, and electricity relief has been extended to around 10,000 manufacturers. Planning rules have also been reformed to make building and investing in the UK faster, cheaper and more predictable.

Industry bodies continue to support the strategy’s direction, with Make UK urging that the plan continue without interruption or dilution. The task for the year ahead is ensuring that headline commitments translate into contracts, facilities and jobs in every region.

Investment follows the sectors

The strategy concentrates support on advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. Investment commitments into these sectors exceeded £25 billion between April and June 2026 alone. Investment and export activity over the same quarter was linked to more than 35,000 jobs. Public finance support helping companies to scale and export passed £2.1 billion over the same period.

Several of the largest projects have now progressed to contract or construction. Rolls-Royce SMR has signed a contract with Great British Energy-Nuclear to develop the UK’s first small modular reactors at Wylfa on Anglesey, supporting around 3,000 jobs. The company has also been selected for Sweden’s first new nuclear build in more than 40 years. Enabling works have started on the Universal United Kingdom Resort in Bedford, a £6 billion agreement between Comcast NBCUniversal and the government expected to create 28,000 jobs and generate close to £50 billion for the UK.

International capital is following the same priorities. A visit by Japan’s prime minister produced more than £18 billion of investment commitments, alongside deals across technology, clean energy and life sciences. An offshore wind compact agreed during the visit could unlock up to £9 billion of Japanese investment and supports 5.9GW of floating offshore wind projects in the UK.

Lower energy costs for manufacturers

Electricity prices remain central to the strategy’s appeal for industry. The British Industrial Competitiveness Scheme has been expanded by 40% and now supports more than 10,000 eligible manufacturers, cutting their electricity bills by up to 25%. An additional payment is scheduled for 2027, giving energy-intensive businesses greater certainty when planning investment.

The scheme announced in June 2025 was designed to cover more than 7,000 businesses, so the expansion widens relief across manufacturing supply chains. Work on the grid is also progressing. Following its consultation on electricity network infrastructure, the government is accelerating the expansion and upgrade of networks, with faster consent timelines and lighter administration for operators.

Clean energy manufacturing is benefiting directly, with ITM Power UK receiving £40 million from Great British Energy, the largest clean power investment the publicly owned company has made so far. The funding sits alongside a £46.5 million grant in principle and supports a 1GW expansion of electrolyser manufacturing, with more than 400 jobs expected in Sheffield.

“Clean power increasingly underpins energy sovereignty and resilience”

Dennis Schulz, CEO, ITM Power UK Ltd

Capital for British scale-ups

Access to growth capital has advanced through the British Business Bank. Under the strategy, the bank’s financial capacity was raised to £25.6 billion, including £4 billion of Industrial Strategy growth capital for the eight sectors. During the second quarter of 2026 it made its largest equity investment, committing £100 million to Oxford Quantum Circuits as part of a £260 million Series C round. It also committed £150 million to a new fund led by Silicon Valley investors to back UK-based AI hardware companies, the largest single fund investment in its history.

Technology founders have gained further routes to funding through a £500 million Sovereign AI Fund. The fund backs homegrown AI companies with investment, visas, supercomputer access and research funding. A separate £1.1 billion AI Hardware Plan includes £750 million for a national AI supercomputer and £400 million for next-generation chips. Visa fee reimbursement has also been introduced for high-growth scale-ups in digital and technologies, life sciences and clean energy, alongside fast-track sponsor licences that allow firms in the priority sectors to expand into the UK more quickly.

Trade deals open new markets

Export opportunities have widened considerably over the past year. The UK became the first G7 country to agree a trade deal with the Gulf Cooperation Council, an agreement expected to deliver up to £3.7 billion annually to the UK economy. The deal also gives professional and business services firms greater legal certainty and improved business mobility.

The UK-India Free Trade Agreement, valued at £4.8 billion, entered into force on 15 July 2026. Businesses can benefit from £400 million of tariff cuts in its first year. An agreement with South Korea completes the three trade deals signed during the strategy’s first year. Exports from the priority sectors supported directly by government exceeded £4 billion between April and June 2026.

Skills for the decade ahead

Workforce planning has become a defining part of delivery. England’s first annual skills report identifies a need for 1.5 million additional workers in key roles across the eight sectors and construction by 2035, giving employers and educators a shared view of demand. The government has committed more than £1 billion to train people for key industries, including 29 specialist technical colleges serving over 100,000 students.

Nineteen of these colleges, backed by £175 million, will train 65,000 students for careers in advanced manufacturing, clean energy, defence, and digital and technologies. Grants worth £50 million to 24 universities and colleges have created 2,500 student places in defence engineering and computing, with a further £30 million allocated for new facilities. Sector Jobs Plans, developed with industry and trade unions, are setting the direction for workforce requirements in each priority sector.

Delivery sets the agenda

Industry’s message is that momentum now matters most, and Make UK’s 2026 Makers’ Manifesto sets out the scale of the opportunity. The organisation notes that manufacturing generates £220 billion in output and supports 2.6 million jobs. It estimates that raising the sector’s share of GDP from 10% to 15% could add £142 billion to the economy. To turn the strategy into growth on the ground, it has called for competitive industrial energy costs, a flexible labour market and stronger regional powers.

Several measures are moving into place to support the next phase. The Strategic Sites Accelerator has appointed a national delivery partner to bring more investible sites to market and will take decisions on a first wave of locations. An industry-led Small Business Regulatory Taskforce is examining unnecessary red tape for smaller firms in high-growth areas. Regulators are also receiving new growth goals and sandboxing powers.

The strategy enters its second year with investment commitments building each quarter and energy relief already reaching manufacturers. The ten-year horizon gives companies the stability to plan major projects, and quarterly reporting gives investors a transparent record of progress.