A MODERN Industrial Strategy aimed at making the UK the premier destination for business investment and growth has been unveiled today (Monday, June 23), promising billions in investment and tens of thousands of new jobs across Wales.

The comprehensive 10-year plan, published by the UK Government, will significantly reduce electricity costs for more than 7,000 energy-intensive businesses by up to 25%. This includes industries such as automotive, aerospace, steel, chemicals, and glass, sectors crucial to the Welsh economy.

High electricity prices, historically among the highest globally, have long hindered UK manufacturing competitiveness. From 2027, the new British Industrial Competitiveness Scheme will lower electricity costs by up to £40 per megawatt-hour for affected businesses, exempting them from levies such as the Renewables Obligation, Feed-in Tariffs, and Capacity Market fees.

Further support is also being offered through the British Industry Supercharger, raising the discount on electricity network charges from 60% to 90% starting in 2026. These initiatives aim to level the playing field, supporting firms to invest, grow, and safeguard skilled jobs.

Prime Minister Keir Starmer described the strategy as a “turning point” for the UK economy, stating: “In an era of global economic instability, this provides long-term certainty and direction British businesses need to innovate, invest, and create quality jobs. Our message is clear: Britain is back and open for business.”

Secretary of State for Wales, Jo Stevens, highlighted the specific benefits for Wales, saying: “Wales has huge potential. This strategy harnesses our businesses and workforce strengths, particularly in aerospace, semiconductors, and emerging industries like floating offshore wind, positioning Wales as a global leader.”

Key Welsh-specific measures include:

  • Over £4 billion investment in the UK’s advanced manufacturing sector, significantly benefiting Welsh firms such as Airbus in Broughton, North Wales.
  • Establishment of a semiconductor doctoral training centre at Swansea University, enhancing South Wales’ globally recognised semiconductor cluster.
  • A Defence Growth Deal cluster leveraging Wales’ defence industry footprint.
  • A new British Business Bank champion for Cardiff Capital Region, connecting businesses and investors to stimulate growth.
  • A £30 million Local Innovation Partnerships Fund in collaboration with Innovate UK to spur innovation in Wales.
  • Enhanced investment opportunities through the National Wealth Fund and Development Bank of Wales.
  • A £600 million Strategic Sites Accelerator to increase investible sites and bolster regional growth.

Business and Trade Secretary Jonathan Reynolds emphasised the broader UK implications, noting: “We’ve secured £100 billion of investment in the past year alone. This Industrial Strategy will ensure the UK remains globally competitive by reducing energy costs, enhancing skills, and attracting billions for new business sites and research.”

Welcoming the strategy, Sarah Williams-Gardener, Chair of Fintech Wales, said: “We look forward to unlocking the full potential of financial services, especially the emphasis on AI and digital innovation.”

Frank Holmes, Chair of the Cardiff Capital Region Investment Board, added: “The renewed focus on industrial strategy and SME finance aligns with our regional vision, driving job creation and innovation.”

Louise Harris, CEO of Tramshed Tech in Cardiff, highlighted the strategy’s role in technology and innovation, stating: “Aligning local strengths with national ambitions will empower Welsh businesses to lead in sectors such as tech and advanced manufacturing, creating sustainable, high-quality jobs.”

The Industrial Strategy also includes sector-specific plans:

  • Advanced Manufacturing: £4.3 billion funding to anchor supply chains and promote zero-emission technologies.
  • Clean Energy: Doubling investments by 2035, including £700 million for clean energy supply chains.
  • Creative Industries: £380 million to boost growth in film, TV, gaming, music, and arts.
  • Digital and Technologies: Over £2 billion for AI and frontier technologies such as semiconductors in Wales.
  • Professional and Business Services: Enhancing global trust and adoption of UK-grown AI technologies.

The plan aims to deliver over 1.1 million well-paid jobs nationwide, driving economic prosperity, raising living standards, and positioning Wales at the forefront of the UK’s growth ambitions.