UK Industrial Strategy: A Welcome Step Forward – But Delivery is Key

The UK Government’s Industrial Strategy, as outlined in yesterday’s policy paper, marks a significant step in setting a long-term vision for economic growth, innovation, and global competitiveness. At Irwin Mitchell, we welcome this clarity of intent and ambition, particularly in a time of global uncertainty and rapid technological change. Below are some reflections on key areas of the strategy from our perspective working closely with clients across sectors and borders.

Energy Costs: Balancing Competitiveness and Net Zero

Energy costs remain a critical issue for UK industry. Compared to European counterparts like France and Germany, UK businesses have faced a competitive disadvantage due to higher energy prices. However, the strategy’s recognition of this challenge—while maintaining a firm commitment to net zero—is encouraging. At Irwin Mitchell, we’ve embraced this dual challenge by supporting the offshore wind sector, including our work with the Inverness and Cromarty Firth Green Freeport. This initiative is helping to establish offshore wind as a cornerstone of the UK’s energy transition, particularly as we move away from reliance on North Sea oilfields

The Eight Key Sectors: A Global “Right to Win”

The strategy’s focus on eight priority sectors—Advanced Manufacturing, Clean Energy, Creative Industries, Defence, Digital & Tech, Financial Services, Life Sciences, and Professional & Business Services—is well-placed. We recognise the potential these sectors hold for UK business—but also their attractiveness from an inbound investment perspective. Foreign investors are increasingly drawn to the UK’s strengths in these areas, and their continued interest will be critical to driving innovation, job creation, and long-term economic growth.

Skilled Workforce: Growing Talent from Within

Post-Brexit, the availability of skilled labour has been a persistent challenge. The strategy rightly highlights the need to retrain and upskill the existing workforce while also attracting elite global talent. At Irwin Mitchell, we’ve long believed in growing our own talent—our annual intake of degree apprentices and graduates is a testament to that. Additionally, our immigration team has a strong track record in securing visas for high-calibre international professionals, helping UK businesses access the skills they need to thrive. Our recent acquisition of Carter Thomas Immigration Solicitors has significantly enhanced our capabilities in this vital area, enabling us to offer even more comprehensive support to clients navigating the complexities of global mobility.

Planning: A System in Need of Reform

The strategy’s call for more planners and a streamlined planning system echoes what our Real Estate Development clients have been telling us for years. Delays and complexity in planning not only increase costs but also deter investment. Reform in this area is essential if we are to unlock the infrastructure and housing needed to support economic growth.

Investor Confidence: A Clear Signal to the World

Perhaps most importantly, the publication of a coherent industrial strategy sends a strong signal to investors. In a world where geopolitical uncertainty seems to have become the norm, having a clear, long-term plan is vital. China has had such a plan for over 25 years—constantly evolving but always present. The UK’s renewed focus on industrial strategy should boost investor confidence both at home and abroad. At Irwin Mitchell, we’ve worked closely with the Department for Business and Trade for over five years, helping private and corporate investors place the UK at the heart of their global strategies. Our Foreign Direct Investment (FDI) Report has been instrumental in this effort.

Conclusion

The Industrial Strategy is a welcome and necessary step. But as ever, the challenge lies in delivery. At Irwin Mitchell, we stand ready to support businesses, investors, and policymakers in turning this vision into reality.