The UK government has launched its new Industrial Strategy which includes the aims of tackling the biggest challenges for UK manufacturers: high energy costs and long waits for grid connections. Made in Britain companies have repeatedly highlighted these challenges, including in the UK Economy Barometers from 2024 and 2025.
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 will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market. 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, the commitment is for that to increase to 90%. This aims to help around 500 eligible businesses in sectors such as steel, ceramics and glass reduce their costs.
The ambition is also to unlock finance for innovative business, especially for SMEs by increasing British Business Bank financial capacity to £25.6 billion. There is planned extra £1.2 billion each year for skills by 2028-29, plus more training opportunities, particularly in defence, digital, and engineering.
The strategy endeavours to help UK companies and reduce regulatory burdens by cutting the administrative costs of regulation for business by 25%. It will also increase support to SMEs by helping them to adopt new technology through the Made Smarter programme while centralising government support in one place through the Business Growth Service.
The strategy highlights the role of government procurement in strengthening domestic supply chains and supporting local jobs, while shaping markets for innovation in the longer term.
It also identifies eight high-growth sectors: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. For each sector, the specific details of the Government’s approach are set out in a separate Sector Plan.
The Industrial Strategy compliments and builds on plans set out in the Trade Strategy and the upcoming SME Growth Strategy.
Made in Britain members can access the full strategy
If you would like to make contact with Made in Britain in relation to the Industrial Strategy, the UK government, supply chains or international trade more widely – please email trade@madeinbritain.org
By Made in Britain 6 days ago | Government & Supply Chains