The strategy lists the eight sectors identified as being growth-driving areas: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
The topic of energy, regularly cited as an inhibitor to growth, sits at the centre of the strategy, both in respect of cost and in businesses being able to connect to the grid. The key areas it addresses are:
The long-awaited Government industrial strategy published on 23rd June 2025 identifies how it intends to drive growth through the implementation of a number of measures and funding over the next decade.
Reduction in electricity costs
The British Industrial Competitiveness Scheme will reduce electricity costs for over 7,000 electricity-intensive businesses by up to 25% from 2027, this is estimated to save an average of 15% off their bills from 2027, at an estimated cost of £500m a year. This initiative will lower electricity costs by up to £40 per megawatt hour for businesses in manufacturing sectors such as automotive, aerospace, and chemicals.
Exemptions from levies
The proposed cost savings are to come from exemptions from various levies which form part of electricity bills. Consumers will still need to pay for the power itself, as well as most other non-power related costs on their bill, such as transmission and distribution costs. This legislation will support the largest consumers which qualify for the exemption; it’s unclear how the costs of the support will be recovered but if it follows the pattern of most energy incentives then it’s likely to be through levies on electricity bills from all other consumers. This could leave moderate consumers paying more, and doesn’t reduce any business’ exposure to volatile wholesale power prices, which is linked to the price of gas.
Growth of private wire arrangements
Directly connecting renewable generation into businesses (private wire arrangements) offers a comparable, if not greater, cost reduction on power prices and reduces exposure to the gas market. Prices are locked in for 15-20 years, offering price certainty for consumers of all scales. The Government focussing on energy costs is encouraging, and businesses are following suit, becoming smarter in their procurement. We see the private wire market as an area of huge growth in the coming years as businesses look to bypass energy suppliers and directly source their own clean renewable power.
Addressing grid connection delays
Connection delays for major demand projects output run into the late 2030s, blocking development and investment into the UK. This strategy proposes to tackle this long wait with the introduction of the Connections Accelerator and the designation of planning powers to support the allocation of grid capacity to those projects deemed strategically important.
We see these changes in the approach to prioritising the access to power as critical for the development of high growth industries and strategic decarbonisation.
Support for energy-intensive firms
The British Industry Supercharger will increase support for the most energy-intensive firms by covering more of the electricity network charges they normally have to pay. This means their electricity bills will decrease, speeding up electrification and decarbonisation which will help them stay competitive, protect jobs, and invest in the future.
Overall, the new Industrial Strategy is a positive development from an energy perspective. By adopting a multisector approach and ensuring alignment with existing energy reforms, the strategy fosters an integrated framework that offers significant opportunities. This includes the growth of private wire agreements, a more strategic approach to issuing grid connections by prioritising those with strategic importance, and support for the most energy-intensive firms. Such measures are poised to drive substantial progress in the sector, promoting efficiency and opportunity.
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